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ABOUT THE AUTHOR

Thomas Krause is employed at eOperations Switzerland Ltd, serving as Product Manager NEST - a leading provider of business solutions for tax administrations in German-speaking Switzerland - while also heading the office of the Digital Tax Association (VDS). He studied business with a focus on taxation and auditing in Germany. After graduation he gained hands-on experience in Switzerland—working, among others, for Ringler Informatik Ltd (e-Tax complete solutions), the Zurich Cantonal Tax Office and Kendris Ltd.
Do US authorities have access to Swiss tax data?

k-flash audio commentDo US authorities have access to Swiss tax data?

The case

According to privatim, the conference of Swiss data protection officers, outsourcing particularly sensitive or confidential personal data, such as tax details or medical information, to cloud services operated by international providers is generally not permitted.

The commentary

Swiss authorities have virtually no way of verifying whether global cloud providers actually comply with contractually agreed data protection and security requirements, which leads to a significant loss of control.

Furthermore, under the US CLOUD Act, American providers can be compelled to hand over customer data to US authorities, even if the data is stored in Switzerland and even without international mutual legal assistance procedures.

For this reason, privatim states that authorities may use such Software-as-a-Service (SaaS) solutions only if they encrypt sensitive data themselves and ensure that the cloud provider has no access to the encryption keys.

This publication has been prepared solely for information purposes and is does not constitute a recommendation, a solicitation, or an offer. The information on which this publication is based has been obtained from sources that we believe to be reliable and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to its accuracy. All expressions of opinion are made as of the date of publication and may be subject to change without notice. k-flash and all related affiliates accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this publication or any part of its contents. The use of this publication should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. This publication is not directed to any person in any jurisdictions that prohibit such publication.
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