I can confirm it. It's official. The Swiss government has reached a tax agreement with the US government.
And I can also hear you mumbling to yourself: there he goes again! What is so unusual about two governments signing agreements on any matter upon which they may wish to agree? It happens all the time.
Yes, you are right. Nonetheless, there is something about this particular one that will leave you livid. According to Bloomberg, the US Internal Revenue Service is expected to drop a lawsuit against the Swiss bank UBS in return for the disclosure of data on some 4,450 US clients who held accounts in Switzerland.
I thought blackmail was a crime. Or is it only a crime when it is committed by an individual? I also believed that contracts negotiated under duress were null and void. Or does that not apply to treaties signed between two states?
Did I expect this? Yes, I did. These days I have got accustomed to this kind of behaviour from the US. It's sad, but it is the reality. What's more, I'm prepared to predict today that, if they continue to go down this road, I can envisage a time, in a not so distant future, when New York will no longer be the financial capital of the world. You will get better terms from the Russian Mafia.
On the other hand, I had always thought that the Swiss were known for their bank secrecy and their precision watches. Now that bank secrecy is gone, if the watches stop keeping time, all that they will be left with is their cheese. And, as everybody knows, Swiss cheese is full of holes.
