AFTER the IRS in the USA, the German Finance Ministry is speculated to have concluded a pact with the Swiss Government whereby Swiss banks would be paying tax to the German Revenue on behalf of anonymous German taxpayers having accounts in Swiss banks. For the 'old wealth', the Swiss Banks are likely to pay a lumpsum fee to the tune of USD 7.5 bn.

Experts feel that such an arrangement may help benefit German clients as it will not only legalise the bank accounts, but will also enable the customer to retain their anonymity. The speculated tax rate levied on 'old wealth' is said to vary between 20% and 30%, depending on the investment period.

As part of the deal, it is reported that the governments in Berlin and Bern have also now united on plans to impose a fee on future income from Swiss accounts held by German citizens, to be paid to the German authorities.