• Germany edition
Business & Money
Photo: DPA

Bundesrat blocks Swiss-German tax deal

Published: 23 Nov 12 11:52 CET | Print version
Online: http://www.thelocal.de/money/20121123-46351.html

German lawmakers in the upper house of parliament rejected on Friday a deal on the taxation of German assets parked in Swiss bank accounts.

The deal negotiated by Berlin and Bern would see Swiss banks deduct taxes from German clients and transfer the tax revenues to Berlin, allowing the clients to remain anonymous.

It was due to take effect in January 2013 but needs to be ratified by both parliamentary chambers.

Germany's lower house has already approved it but members of the opposition in the upper house, the Bundesrat, had already threatened to block the deal which they see as being too soft on tax-dodgers.

Finance Minister of North Rhine-Westphalia Norbert Walter-Borjans, of the main opposition Social Democrats, told the Bundesrat it was a deal which made "honest taxpayers feel like fools".

But German Finance Minister Wolfgang Schäuble called for backing for the
deal, saying: "The agreement tries to find a better solution for a situation
which is unsatisfactory."

Neighbours Germany and Switzerland have been embroiled in a spat over tax since 2010 when German authorities raided branches of Credit Suisse bank in 13 German cities after buying data on suspected tax frauds.

Switzerland reacted angrily, saying the data were stolen in violation of its banking secrecy laws. As much as €180 billion in German assets are hidden in Switzerland, according to unconfirmed media reports.

AFP/bk

What do you think? Leave your comment below.


Your comments about this article:

13:32 November 23, 2012 by bwjijsdtd
Well, I wonder where Michael Schumaker will move to now? But then again, that may have all been bluster to get his name in the paper ... I have an extra suitcase if you need it Michael ...
17:44 November 23, 2012 by sonriete
If the money is in Swiss banks, why dont they just charge them Swiss tax on it? And if Swiss citizens money is in Germany, have them pay German tax. That is what seems fair to me. Why would one country have the right to tax money that is not even in their jurisdiction?
ADD YOUR COMMENT   (YOU MUST LOG IN OR REGISTER TO MAKE A COMMENT)
Business & Money headlines
Photo: DPA

IEA: protect consumers from energy price hikes

The International Energy Agency said Friday that Germany must shield its consumers from paying too much of the cost of its ambitious switch from nuclear power and fossil fuels toward renewable energy. READ () »

Photo: DPA

German consumers keep recession at bay

Buoyant consumer confidence and increased household spending is keeping Germany, Europe's biggest economy, from recession, despite sagging exports and falling investment, data showed on Friday. READ () »

Photo: DPA

Tax evasion 'OK for Joe Normal' say Germans

Although Germans express outrage when wealthy or famous people evade taxes, many of them do the same themselves, albeit on a smaller scale, a new survey shows. READ () »

Photo: DPA

Spain and Germany fight youth employment

Germany has agreed to provide vocational training and jobs for young Spaniards starved of opportunities in their crisis-hit home country. READ () »

Photo: DPA

Car boss asks Merkel to rethink CO2 pledge

The president of the German Automobile Association (VDA) has written to Angela Merkel, asking her to retract her pledge to significantly reduce CO2 car emissions by 2025, it was reported on Tuesday. READ () »

Photo: DPA

SAP to hire hundreds of autistic IT experts

German tech company SAP said on Tuesday it wants to hire hundreds of people with autism to work as software testers and programmers. The search has, it said, begun for people “who think differently from others.” READ () »

Photo: DPA

Economists warn against German euro exit

While a third of Germans would rather pay with the old Deutsche mark than the euro, economists warn that a German exit from the currency union would result in a disaster. READ () »

Photo: DPA

Germany cool to France's EU economy plan

Germany said Friday that French President Francois Hollande's proposal for a eurozone economic government was "interesting" but reacted coolly to his call for strengthened European budgetary powers. READ () »

Photo: DPA

Au pairs rules relax for non-German families

Foreign families will soon be able to officially engage au pairs from outside the European Union, as long as they speak German at home, as the government prepares to change the law. READ () »

Wolfgang Schäuble and his French counterpart Pierre Moscovici. Photo: DPA

Germany refuses to slam French economic policy

Germany will not publicly criticize France over economic policy, German Finance Minister Wolfgang Schäuble insisted on Thursday, amid differences between Berlin and Paris over growth versus austerity in battling the eurozone debt crisis. READ () »

More Business & Money

See all ads | Join the Marketplace

Jobs in Germany, in English

970 jobs available
657 new jobs this week
0 new jobs today

ALL JOBS »

Latest Business & Money news from Sweden
News from the Goethe-Institut
News from DeutschlandOnline

Toytown Germany
Germany's English-speaking crowd
Trade CFDs with InterTrader.com
Start trading shares, equities, forex, etc. No commission on equities; Low min. margins. Apply for a CFDs account now!
Little house in Spain
'Charming, old, beamed cottage for holiday let in Jesus Pobre, Alicante, Spain
www.littlehouseinspain.com/
Albatross Insurance
Professional and qualified consultancy on all insurance and finance matters in Germany, Telephone: +49 2163 571 1740, Email: bg@albatross-assurance.com
www.albatross-assurance.com
Hotel reservations in Berlin
Visiting Berlin anytime soon? Book your hotel in Berlin here.
Rental apartments in Berlin
For home-from-home holiday accommodation, search for a Berlin apartment to rent.