US Treasury: Swiss tax deal to help cut tax evasion

Published: 21 Jun 2009 17:25:04 PST

WASHINGTON, June 19 - The U.S. Treasury on Friday confirmed that it has reached a deal with the Swiss government to revise a two-way income tax treaty to boost an information exchange aimed at combating tax evasion via offshore accounts.

The changes, the result of more than two months of negotiations, are a key step towards Switzerland's removal from an international "grey list" of tax haven states. An official signing of the new protocol is expected in the next few months, the Treasury said.

"This treaty will increase our ability to enforce our tax laws and will help bring an end to an era of offshore accounts and investments being used for tax evasion," U.S. Treasury Secretary Timothy Geithner said in a statement.