Switzerland is suspending its exchange of tax information with Russia to prevent “inappropriate” use of sensitive information as the war in Ukraine continues, the Swiss Federal Council announced in a statement on Friday.
“Due to the unclear and uncertain situation in the in connection with Russia’s military aggression against Ukraine, there is no guarantee that the sensitive information to be exchanged will not be used inappropriately,” a spokesperson for the State Secretariat for International Finance told CNN.
“The suspension is not a sanction, but a measure to protect local and foreign tax payers,” the spokesperson added.
Switzerland is “reacting in the same way, as for example, all European Union member states, the United States, Canada and the United Kingdom,” the spokesperson said.
According to the council’s website, tax authorities exchange information — for example, on financial accounts and advance tax rulings — “in order to increase transparency and prevent cross-border tax evasion.”