Switzerland, Britain sign tax deal

Switzerland and Britain signed an agreement on Thursday to tax money kept by British residents in secret Swiss bank accounts, a move which could net the British government billions of pounds and help Swiss banking clean up its image. The agreement, signed in London by Swiss Finance Minister Eveline Widmer-Schlumpf and Britain's Secretary to the Treasury David Gauke, follows a blueprint struck with Germany to regulate untaxed funds.
Strict secrecy has helped Switzerland build up a $2 trillion offshore financial sector. But the country has faced an international campaign in recent years against tax evasion as governments with big budget deficits seek to boost revenues. Under the deal, money held by British residents with Swiss banks will be subject to a levy of 19 to 34 percent of the account balance, and a withholding tax will apply going forward.