The discussion has begun and it seems well put. At least diplomatically. Italy and Switzerland are close to an agreement to regularize capital held in Swiss territory by non-residents and on the introduction of a withholding tax on future capital income.
This was announced in a note from the Italian Economy Ministry and a press release from the Swiss Tax Department, anticipating that there will be a meeting "soon" between Prime Minister Mario Monti and the President of the Confederation Eveline Widmer-Schlumpf.
On May 24, however, the first meeting of the technical group created ad hoc today will be held.
“The parties note with satisfaction that the issue concerning rebates for cross-border commuters has been resolved and that the relative payment order in favor of Italy has been given”, the note from the Italian Treasury also says, referring to the tax refunds due to the Italian border municipalities whose payment had been frozen by the Canton of Ticino.
The negotiations concern a draft agreement similar to that signed by Switzerland with Germany and the United Kingdom.
The agreement would be based on two elements: an amnesty on taxes evaded in the past and the attribution to Switzerland of the role of withholding agent for the Italian State on taxes to be paid in the future.
If the agreement were signed, Italians with assets in Switzerland could continue to remain anonymous by paying a tax on income and capital gains.
Mario Monti's government has shown itself to be cold in the past because of the amnesty contained in the agreement model.
“This is an aspect that needs to be evaluated,” Treasury Undersecretary Vieri Ceriani said last week about the amnesty.
Now Rome seems to have overcome its doubts also in light of the substantial go-ahead arrived from the European Commission to these types of agreements, an element explicitly referred to in the ministry's press release announcing the start of negotiations.
Great Britain, Germany and Switzerland have in fact renegotiated the terms of their agreements with Bern to overcome the objections raised by Brussels in recent months.
The European Commission feared that the bilateral agreements could violate some tax directives and, above all, loosen the fight against tax evasion.
