Italian PM Monti to negotiate tax treaty with Switzerland
Italian prime minister Mario Monti has stated its willingness to open negotiation with Swiss authorities over a bilateral tax treaty which would tax Italian nationals holding deposits in Switzerland.
“We are ready to reconsider the matter again,” Monti said during a press conference, adding that an agreement would be subject to the decision of the Swiss canton of Ticino to lift a freeze on withheld Italian commuter taxes, imposed by the local authority to pressure the Swiss government to renegotiate the existing agreement with Italy on the taxation of cross-border workers.
The prime minister had previously refused to discuss the matter, despite Switzerland’s decision to sign bilateral treaties with Germany, Britain and Austria. However, the European Commission’s decision to accept the validity of these treaties has prompted Monti to change his mind.
The bilateral treaties signed between Switzerland, Germany, Britain and Austria were accepted by the European Commission in April and will take effect in 2013.
Italian parties claim that a tax agreement would lead to the repatriation of up €50bn.
According to estimates from the Italian internal revenue service Agenzia delle Entrate, Italian deposits in Swiss banks currently average €150bn.