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July 22, 2010 - Phil Hodgen

Floodgates are opened in Switzerland

On 15 July 2010 the Swiss Federal Administrative Court issued a key ruling.  The Swiss Parliament previously approved the UBS Agreement with the IRS, which called for sharing of previously-confidentlal bank information on 4,450 lost souls.  Now the Federal Administrative Court has ruled that the Parliamentary action has cured previous impediments to information sharing.

From the Court’s press release:

In a pilot verdict of July 15, 2010, the Federal Administrative Court rejected a complaint with which a UBS client wanted to prevent the release of her client data to the American tax authorities. The Federal Administrative Court came to the conclusion that the agreement, approved by parliament, with the United States of America regarding a request by the Internal Revenue Service for administrative assistance concerning UBS AG (State Agreement 10) is binding for the Federal Administrative Court in the sense of article 190 of the Federal Constitution. Even if there were a violation of the European Convention on Human Rights, the Federal Constitution and federal laws, the agreement would still be applicable. In the case to be judged, the preconditions for the granting of administrative assistance defined in the agreement were given. The verdict cannot be referred on to the Federal Supreme Court.

The flag is up.  The floodgates are open.  Here’s the Federal Administrative Court Press Release on 19-Jul-2010.

Voluntary Disclosure