Swiss parliament clears way for tax treaty with US

Associated Press

GENEVA

Swiss lawmakers on Thursday gave final approval to a treaty with the United States that will hand Washington thousands of files on suspected tax cheats, agreeing to drop plans to allow a referendum on the issue.

Parliament’s upper and lower houses agreed that there will be no possibility of referendum on the deal that will see the country’s biggest bank, UBS AG, divulge the names of 4,450 American clients suspected of tax evasion to U.S. authorities.

The agreement between both houses secured final approval of the treaty, which the government hopes eventually will end UBS’ three-year battle with U.S. tax authorities that culminated in revelations the bank had for years helped American clients hide millions of dollars in offshore accounts.

UBS chief executive Oswald Gruebel welcomed the decision.

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