France and Switzerland on 11 July 2013 have signed an agreement on inheritance taxes as per which Paris will help it bringing in more money.
As per the agreement, the inheritances will be taxed based on where the recipient resides, but not where the deceased lived, as it is used to be earlier. The agreement is supposed to allow France to ask Switzerland to investigate suspicious bank activity even if it does not have the suspects’ names.
The new agreement will make it tuff for people living in France to escape taxes. It is worth mentioning here that France taxes inheritance progressively up to 45 per cent, compared to Switzerland’s maximum of 7 per cent.
France is one of a growing number of cash impoverished country which is trying to find tax hiding away in Swiss accounts.
When: 11 July 2013