Lower house of Swiss Parliament approves tax information deal

Lower house of Swiss Parliament approves tax information dealIt has been reported that the lower house of the Swiss Parliament approved a deal that would allow a Swiss bank to provide tax information on clients to U. S. tax authorities.

Members of the lower house, however, are considering putting the proposition up to a national vote, which could delay or derail the agreement, which began with a 2009 lawsuit in Florida in which the U. S. Justice Department charged the bank with aiding U. S. tax evaders.

The New York Times reported on Tuesday that the agreement has been bouncing between approval and the claim that it is unconstitutional for Switzerland to divulge information on bank clients.

After Switzerland agreed to the original deal, Swiss courts blocked its implementation. That forced lawmakers to consider changing Swiss laws.

It was also reported that the Swiss upper house then approved the measure, but the lower house did not. With revisions, members of the lower house backed the new law with a vote of 106-80 Tuesday. It now goes back to the upper house.

The Justice Department, meanwhile, would reopen its case against UBS if Switzerland does not comply with an agreement, which originally called for divulging the names of 52,000 U. S. clients.

The Times further reported that the lawsuit was dropped when Switzerland agreed to divulge 4,450 names by August 2010. (With Inputs from Agencies)