Comments on: The EU Savings Tax Directive and Switzerland http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/ Richard Murphy on tax and corporate accountability Sun, 20 Jul 2008 21:47:51 +0000 http://wordpress.org/?v=2.3.3 By: Mark http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-431165 Mark Mon, 12 May 2008 08:43:22 +0000 http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-431165 Tim, All deposits offered by Swiss banks to EU residents are fiduciary deposits, due to the 35% Swiss withholding tax. This means the Swiss bank holds the deposit in its own name but placed in Jersey, Guernsey, etc. There is virtually no (less than 3%) Swiss Franc fiduciary deposit accounts. For EU residents, this deposit will injvariably be in Euros. For others, it may be in Sterling but mostly in US Dollars. So your entire article about deposits in Swiss Francs is debunked (illogical?). Tim,

All deposits offered by Swiss banks to EU residents are fiduciary deposits, due to the 35% Swiss withholding tax. This means the Swiss bank holds the deposit in its own name but placed in Jersey, Guernsey, etc. There is virtually no (less than 3%) Swiss Franc fiduciary deposit accounts. For EU residents, this deposit will injvariably be in Euros. For others, it may be in Sterling but mostly in US Dollars. So your entire article about deposits in Swiss Francs is debunked (illogical?).

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430476 Tax Research LLP Sat, 10 May 2008 21:09:03 +0000 http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430476 Tim Most people in Europe use the Euro Most people subject to the EU STD live in the Eurozone. Those are the only people this data concerns Switzerland offers Euro accounts Why would someone take a currency risk when they do not need to? Your own challenge is the assumption that appears entirely illogical. Do you go round exchanging currencies for the sake of it? I doubt it. And the data on EBS and other inflows storngly implied a Swiss destination - I picked one as a sample. A wider reading supports my case. Richard Tim

Most people in Europe use the Euro

Most people subject to the EU STD live in the Eurozone. Those are the only people this data concerns

Switzerland offers Euro accounts

Why would someone take a currency risk when they do not need to?

Your own challenge is the assumption that appears entirely illogical. Do you go round exchanging currencies for the sake of it? I doubt it.

And the data on EBS and other inflows storngly implied a Swiss destination - I picked one as a sample. A wider reading supports my case.

Richard

]]> By: Tim Worstall http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430385 Tim Worstall Sat, 10 May 2008 14:05:50 +0000 http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430385 Why are you using Euro LIBOR? At least some,. if not the majority, of deposits in Swiss banks will be in CHF....so the CHF interest rate should be used, surely? Doing that rather takes away the inevitability of your conclusion about rising avoidance. Why are you using Euro LIBOR? At least some,. if not the majority, of deposits in Swiss banks will be in CHF….so the CHF interest rate should be used, surely?

Doing that rather takes away the inevitability of your conclusion about rising avoidance.

]]> By: Our Favourite Tax Expert http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430384 Our Favourite Tax Expert Sat, 10 May 2008 14:04:43 +0000 http://www.taxresearch.org.uk/Blog/2008/05/09/the-eu-savings-tax-directive-and-switzerland/#comment-430384 [...] Gets a little confused I fear. Take it away Mr. Murphy! [...] […] Gets a little confused I fear. Take it away Mr. Murphy! […]

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