Swiss government ready to sign tax deal with United States

A Swiss flag is pictured next to the Jet d'Eau (water fountain), and the Lake Leman from the St-Pierre Cathedrale in Geneva June 5, 2012.

Credit: Reuters/Denis Balibouse

ZURICH | Wed Aug 28, 2013 11:29am EDT

ZURICH (Reuters) - Switzerland said it is ready to end a long-running dispute with U.S. prosecutors over Swiss banks that have sheltered tax evaders, without disclosing any terms of the deal.

The two governments have been at loggerheads over a tax evasion crackdown which has ensnared around a dozen Swiss banks, is threatening a raft of others, and earlier this year felled Wegelin, Switzerland's oldest bank, following an indictment.

The Swiss government said on Wednesday the signing of the joint statement with the U.S. should enable Swiss banks to resolve the dispute with the United States while complying with existing Swiss laws. It gave no further details, and the finance ministry was absent at a weekly government press conference.

A Swiss newspaper reported the host of banks not yet under formal investigation in the U.S. could face fines of as much as 50 percent of their American client assets. [ID:nL6N0GT0T3] Government spokesman Andre Simonazzi said the terms and conditions of the program would not be immediately released, but would be communicated "as soon as possible".

While Switzerland's banking lobby and a banking employees association welcomed the move, a spokeswoman for the U.S. justice department didn't immediately comment on the Swiss statement.

The agreement deals mainly with a settlement for the roughly 100 Swiss banks that had U.S. clients, but are not yet being investigated by U.S. justice authorities.

"The SBA welcomes the positive outcome of the Federal Council's decision, as this means that the final step towards a solution has been taken and the U.S. can now launch the program," the SBA said in a statement.

Around a dozen banks are under U.S. investigation, including Credit Suisse (CSGN.VX), Julius Baer (BAER.VX), the Swiss arm of Britain's HSBC (HSBA.L), privately held Pictet and state-backed regional banks Zuercher Kantonalbank and Basler Kantonalbank (BSKP.S).

Several of those banks have said they are preparing information of client withdrawals demanded by U.S. investigators, after the Swiss government said it would allow them to circumvent secrecy and privacy laws to do so.

Last week, a Swiss government source told Reuters the U.S. government had ratcheted up the pressure on Switzerland to strike a deal after the Swiss parliament rejected an accord in June, tightening its negotiating terms after the rebuff.

(Reporting by Martin de Sa'Pinto; Editing by Katharina Bart and Mark Potter and Louise Heavens)

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Seaside Towns Given More Government Cash

More cash is being offered to coastal towns as part of a Government bid to boost deprived areas.

The Coastal Communities Fund is being expanded to £29m next year and will now last another 12 months to 2016.

The fund, created by the coalition in 2012, is used to invest in seaside towns and villages and is expanding due to rising marine revenue.

It is paid for by channelling money equivalent to 50% of the profits from the Crown Estate's marine activities.

Previous projects to have benefited include the harbour on the Island of Barra in the Western Isles and the North York Moors railway.

Making Wadebridge in Cornwall the first solar-powered town in Britain was also among the 51 bids to receive money in the first year.

The Treasury believes the cash already approved should deliver 5,000 jobs and 500 apprenticeships.

Chief Secretary to the Treasury Danny Alexander said: "The Coastal Communities Fund is giving our seaside towns and villages a real chance to grow as the nation benefits from our marine resources."

Communities Secretary Eric Pickles added: "This Government is committed to supporting our seaside towns and we know the Coastal Communities Fund is really making a difference."

The funding for 2014/15 financial year is split between each of the UK countries.

England receives £22.15m, Scotland's Highlands and Islands £2.85m, the rest of Scotland £1.95m, Wales £1.55m and Northern Ireland £0.6m.

Expansion of the fund comes after the Centre for Social Justice (CSJ) warned some seaside towns were becoming "dumping grounds for poverty and social breakdown".

Its study revealed seven of the 20 areas in the UK with the highest level of working-age people on out-of-work benefits were on the coast.

On key poverty measures such as teenage pregnancy and school failure, it found some resorts now suffer from problems as severe as deprived inner-city areas.

CSJ director Christian Guy said: "Investment in our seaside towns is welcome, but this should be only the start.

"We need to boost skills, attract businesses, provide decent housing and encourage family stability.

"This would breathe new life into these towns - not just for visitors, but the people that live there."

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