Spanish tax evaders under attack: request for assistance by the Spanish tax administration with the Swiss tax administration
According to a message on the website of a leading Swiss universal bank the Spanish tax administration has requested administrative assistance with the Swiss Federal Tax Administration (SFTA). Presumably, the Spanish tax administration issued a so called group request. That is, the tax administration wants information about clients who can be identified by other means than the indication of the name and the address of the client.
Following the ruling of the Swiss Federal Court dated September 12, 2016 (Case no. 2C 276/2016 ) which has approved the supply of data on the basis of a group request by the Netherlands, the way now is open for data supplies to other requesting countries. The data can lead to the detection of tax evasions committed by the bank clients by not indication the income resulting from the foreign assets in the income tax declarations. In combination with the Automatic Exchange of Information, which already started on January 1, 2016 for some jurisdictions (so called early adopters), the tax authorities dispose of an effective legal instrument to track down tax evasion. Currently, there is no voluntary disclosure program running in Spain.
Please contact us if you could be in the scope of the administrative request or if you have questions about legal assistance in tax matters.