Exchange of Tax Information: The End of Banking Secrecy in Switzerland and Singapore?

Jean-Rodolphe W. Fiechter LL.M., National University of Singapore

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Abstract

At their London Summit in April 2009, the G20 Leaders proudly declared: “The era of banking secrecy is over.” The scope of this paper is to examine whether this statement is true. Is exchange of information really the panacea against tax evasion? Did it eradicate the banking secrecy cultivated for centuries by Switzerland and later also by Singapore or does the protection of privacy still have a role to play in the new global order?

In the first chapter, I will depict the origins of the banking secrecy and its development in recent years until the breakthrough of the OECD transparency rules. The second chapter will deal with legal restrictions and practical difficulties encountered with the implementation of exchange of information mechanisms, by taking the example of Europe. Are they possibly a source of competitive advantages? The third and last chapter will be devoted to the general assessment and point out the importance of a global governance mechanism.