EVEN as the global financial crisis continues to erode the bottomline
of the Swiss Banking industry, according to various studies, the tax pacts with
Germany and the UK are likely to trigger flight of wealth to the tune of 55 bn
Swiss Franc. Rich and famous from the UK and Germany who hold their untaxed
wealth in Swiss Banks are expected to withdraw their investments in the range of
35-40% before the new tax treaties come into force from 2013.
The
wealthy clients from the UK are estimated to have about 64 bn Swiss Franc in
Swiss banks. Besides losing their investments, the key banks would also lose
wealth management fees to the tune of 1.4 bn Swiss Franc annually.
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