The thirty year old tax treaty between Australia and Switzerland will be updated as part of the Gillard Government's commitment to reducing barriers to cross-border investment and attracting overseas investment to Australia.
The Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon Bill Shorten, today announced that Australia and Switzerland will begin discussions next month to modernise the existing tax treaty.
"I am pleased to announce these discussions with Switzerland - Australia's fifth largest source of foreign direct investment, amounting to $17.5 billion in 2009," Mr Shorten said.
"The Australian Government is committed to ensuring Australia's tax treaty network remains up to date to facilitate trade and investment, while also maintaining the integrity of the tax system."
"The Australian Government will discuss with Switzerland ways to modernise all aspects of the existing treaty. A key aim of these negotiations will also be upgrading the tax information exchange arrangements."
"I am inviting interested parties to provide comments on how the 1980 Australia - Switzerland treaty might be improved to best reflect the needs of individuals and businesses. Written submissions are sought by 28 February 2011."
Submissions should be e-mailed to taxtreatiesunitconsulatation@treasury.gov.au or addressed to:
Unit Manager
Tax Treaties Unit
International Tax and Treaties Division
The Department of the Treasury
Langton Crescent
PARKES ACT 2600
A copy of the existing tax treaty is available at www.treasury.gov.au.