Americans aren’t the only ones who keep Swiss bank accounts. Germans have a long history of evading taxes in this manner too, and the German government has finally established a way to mitigate the damage this has done over the years. The two countries are reportedly going to sign a deal on August 10th that would allow for taxation of German deposits in Swiss banks. Under the agreement, Swiss banks could have to pay the equivalent of $2.5 billion to the German government for damage already done due to tax evasion over the past 10 years. These German accounts will thereafter be considered legitimate. Also, some think that this accord will make a positive impact on the relationship between these two countries.
Like the IRS, German tax officials have cracked down on tax evasion in recent years, and it appears to be paying off. See full story here.