Tax agreements with the EU will result in loss of more than $ 1 billion to banks in Switzerland

Swiss banks have signed bilateral agreements on tax deviators with the German authorities and the UK, expect significant financial losses. According to research firm Booz & Co, the outflow of funds will be
47 billion francs (51.1 billion dollars). In this year the Swiss financial institutions will lose about 1.1 billion francs ($ 1.2 billion) - 4% of income on the level of 2010.Banks in Switzerland, including UBS and Credit Suisse, earlier this year agreed to give the proceeds from the tax on investments and capital gains finance ministries of Germany and Great Britain in exchange for non-disclosure of client names. Agreement shall enter into force in 2013 and, according to analysts, investors turn into the fall of interest to a country which until recently was considered a European tax haven.Private bankers and experts to work with wealthy clients surveyed by Booz, believe that the outflow of capital from leading Swiss banks amount to 25-30% of the total outstanding balances of funds not declared to the national tax authorities. According to RBC daily partner Booz & Co and the study's author, Andreas Lentshofer basically take their money out of banks will be smaller savers, placing less than 500 thousand francs.Currently, the Swiss bank accounts is about 270 billion francs of client funds, of which about 164 billion francs, placed here in an attempt to evade paying taxes at home. As a result, due to the outflow of funds unit to work with wealthy clients will annually lose up to 600 million francs of revenue, analysts said Booz. In addition, banks will lose another 500 million francs due to customers' requirements to reduce the margin of asset managers of offshore accounts to the level of on-shore accounts (bank accounts or investments in countries that have a normal tax rate and government-controlled). Currently, revenue from the Swiss Bankers offshore accounts under their control, are 120-150 basis points. At the same margin from onshore accounts in Switzerland, the same is 90-100 basis points, while in Germany only 60-70 basis points.However, this trouble for Swiss bankers do not seem to be over. According to the Association of Banks in Switzerland, an agreement on taxation of clients may be concluded with the authorities in Greece, Italy and France. In this case, the losses of financial institutions in Switzerland will be doubled.Based on:RBCDaily