Tax deals to cost Swiss banks

ZURICH (Reuters) Up to 47 billion Swiss francs ($51 billion) could leave Swiss bank accounts after tax canada goose uk shop deals with Germany and buy canada goose jacket cheap Britain to crack down on hidden funds, uk canada goose a study released on Tuesday said.

Strict secrecy has helped Switzerland build up canada goose coats on sale a $2 trillion offshore financial sector. But the Canada Goose Outlet country has faced an international campaign in recent years against tax evasion as governments canada goose black friday sale with big budget deficits seek to boost revenues.

Switzerland has signed agreements https://www.canadagoosejacketsaleca.com with both Germany and Britain in recent months, allowing the Alpine state to preserve what it can canada goose coats of client privacy by imposing canada goose factory sale a withholding tax and a levy canada goose clearance on legacy canada goose uk black friday wealth.

However, a European Commission challenge this week to the British and German tax deals means they are far from certain.

Outflows due to British and German clients pulling out their money in the wake of the deals and settling their tax bills constitute about 2.3 canada goose uk outlet percent of the total offshore assets held in Switzerland, consultancy Booz Co said.

That outflow cheap canada goose uk will reduce revenues for the Swiss wealth management sector by more than 1 cheap Canada Goose billion francs, Booz said, adding it had not included swings in the stock market and the Swiss franc in its calculation.

is expected that capital withdrawals over the next canada goose clearance sale 18 months Canada Goose Coats On Sale (will) accelerate until the start of 2013, the study said.

Germans have some 210 billion francs in offshore holdings in Switzerland, of which 60 percent is estimated to be undeclared, while Britons have around 60 billion, of which Canada Goose Jackets about 63 percent is likely not declared, the study said.

Earlier this month UBS, Switzerland biggest bank, said client assets canada goose store of up to 30 billion francs were at risk of flight as a result Canada Goose sale of changes Canada Goose online in tax regulation for clients domiciled in western Europe.

CONSOLIDATION AHEAD? The bigger administrative burden Swiss banks face to help ensure their clients are paying taxes means costs will rise, leading to an uptick in sectoral consolidation Canada Goose Parka in the next 24 months, the study found.

Even small banks expect to face expenses as high as double digit millions, the uk canada goose outlet study said, as they finance new computer systems, for example. to the structural effects of the tax at source, further banks will become loss making.

Credit Suisse Group AG said on November 15 it plans to integrate small private bank Clariden Leu into its organization, ending the 250 year old Leu brand in a bid to save costs.

There has been speculation Switzerland deals canadian goose jacket with Germany and Britain Canada Goose Online will do little to curb tax dodging, as evaders will simply canada goose withdraw their money in Switzerland and place it with banks in other centres such as Singapore or the Cayman Islands.

Yet Booz said this is unlikely.

private banks will not support their clients in moving wealth to other jurisdictions, Booz Canada Goose Outlet said, noting that some clients such as those from Latin America placed money in Switzerland not for tax reasons, but for reasons of political and fiscal buy canada goose jacket stability compared with their home countries.

current market developments, the value and advantages of the Swiss financial place political and financial stability, a strong currency, quality of service, discretion and trust are today more important than ever.