Why is Switzerland on Italy’s financial blacklist?
Swiss President Ignazio Cassis has called on Italy to drop Switzerland from its financial blacklist, saying that the country remains on the list “without reason”. But why was Switzerland ever added to the blacklist? And what needs to be done to have the country removed from it?
What is the Italian financial blacklist and why is Switzerland on it?
Italy’s financial blacklist details countries that do not provide adequate financial information on companies or individuals doing business in their territory. While blacklist rules were significantly scaled back in 2016, Switzerland still manages to find itself on the list because of rules around personal taxation, much to President Cassis’ frustration.
At a meeting with an Italian delegation on April 29, the president said that it was "ugly" to be included on the list. The country has been on the blacklist since 1999, which means that people and companies that move from Italy to Switzerland have to prove to the Italian government that they have relocated to avoid being double-taxed, instead of vice-versa.
Blacklist creates administrative issues in Switzerland
This creates administrative difficulties for affected individuals and the Swiss government argues that it creates a competitive disadvantage for companies operating in Switzerland. Swiss politicians are now pushing for the country to be removed from the list.
Since the country has been on the financial blacklist since 1999, it’s unlikely that Italy is in a rush to remove Switzerland. According to the Tages-Anzeiger, in recent years the pair have begun to cooperate on more financial issues, but there is still some way to go.