Swiss, Germany to Sign Tax Deal August 10, SonntagsZeitung Says

Switzerland and Germany will sign a tax treaty on August 10 and Swiss banks will have to pay 2 billion Swiss francs ($2.54 billion) upfront as part of the agreement, SonntagsZeitung newspaper said.

The accord, which settles a dispute over tax evasion by wealthy German clients, will have to be approved later by Swiss parliament, the Zurich-based newspaper said, citing people familiar with the situation. The upfront payment will be refunded to Swiss banks if Germany’s tax authorities receive at least 4 billion francs through the agreement, the report said.

A separate treaty with the U.K., which foresees an upfront payment of 500 million francs by Switzerland’s banks, will be signed later, SonntagsZeitung said.

To contact the reporter on this story: Klaus Wille in Zurich at kwille@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net