The case

Administrative assistance in tax matters: Names of third parties in data transmitted to the requesting authority abroad must be covered (redacted) – Judgment of the Federal Administrative Court of 3 September 2019.

The Federal Tax Administration (FTA) has wanted to forward the names of more than one hundred people to the American tax authorities. The FDPIC recommended that all persons not formally involved in a request for administrative assistance in tax matters (e.g. third parties) be informed in advance if information about them should be transmitted to the requesting authority abroad. Thus, they should be given the opportunity to exercise their right of appeal. The FTA refused to do so on the grounds that it was incompatible with Switzerland’s international obligation to ensure an effective exchange of information. The FDPIC lodged a complaint with the Federal Administrative Court. The latter has now proved FDPIC right. If Switzerland submits data to tax authorities abroad in the context of requests for administrative assistance in tax matters, names of third parties who happen to appear on the file must be redacted or those affected must be informed prior to submission. For more see link 1 and link 2.

Source: FDPIC and NZZ-E-Paper 11.09.2019

The commentary

The judgment is not yet final.

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