EU withholding tax proceeds grow
The Swiss government says there has been a substantial increase in the amount of tax retained on behalf of the European Union for 2007.
The withholding tax on savings accounts of EU citizens added up to SFr653 million ($618 million) last year, SFr116 million more than in 2006.
A 15 per cent levy is taken from interest earned on savings accounts and distributed to EU countries unless clients can prove they already pay the tax in their home country.
The agreement makes provision for 75 per cent of the proceeds to be passed on to EU member states, with 25 per cent retained by the Swiss government.
This meant that last year SFr489.9 million was transferred, with Switzerland keeping SFr163.3 million.
The tax was introduced three years ago after an agreement between the EU and Switzerland and Liechtenstein.
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