LDF and Swiss-UK Tax Agreement
3.4.4.6 Exchange of Information
To safeguard the purpose of the agreement, HMRC is allowed to request information from Switzer-
land if plausible grounds are provided.“ A request is plausible if HMRC anticipates a tax risk.“* On
each request HMRC has to provide the relevant name and address, date of birth, profession and other
information, if known.“* HMRC has to inform the person before the request, unless it sees a risk in
doing so.*^ To safeguard the agreement intention, HMRC is allowed to request judicial or administra-
tive assistance.?? The Swiss tax authority must inform the person before they exchange information
with HMRC to appeal against the exchange." The maximum number of requests is 500 p.a. This
amount may change in the future.**
In contrast to the LDF, HMRC could request tax information from Switzerland from the start of the
agreement, but the number of yearly requests is capped. Such a possibility seems necessary to ensure
the agreement is randomly supervised. The criteria for when a request has to be accepted are unclear
and may cause problems in practise. The definition of tax risks can be very broad or very specific de-
pending on the interpretation of the parties.
3.4.5 Final Provisions
The Swiss tax authority is allowed to deduct 0.1% of all transferred assets to cover expenses.*? The
Swiss government may use reciprocity.^? Retrieved information is confidential and can only be used
for tax purposes unless the contracting state consents to other use.*' The Swiss Financial Markets
Authority (FINMA) must carry out audits to ensure the implementation of the agreement and must
send reports to HMRC.^? Switzerland and the UK have established a joint commission with represent-
3! CH-UK Tax Agreement, 2011, art. 33, para.
^4? CH-UK Tax Agreement, 2011, art. 33, para.
^43 CH-UK Tax Agreement, 2011, art. 33, para.
^* CH-UK Tax Agreement, 2011, art. 33, para.
55 CH-UK Tax Agreement, 2011, art. 33, para.
#6 CH-UK Tax Agreement, 2011, art. 33, para. 10.
#7 CH-UK Tax Agreement, 2011, art. 33, para. 11.
#8 CH-UK Tax Agreement, 2011, art. 33, para. 12.
^? CH-UK Tax Agreement, 2011, art. 35.
#0 CH-UK Tax Agreement, 2011, art. 36.
^! CH-UK Tax Agreement, 2011, art. 37, para. 1 & 2.
^? CH-UK Tax Agreement, 2011, art. 39, para. 1 & 4.
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