U.S. strikes deal with Swiss to crack down on tax evaders

Think one of those infamous “Swiss bank accounts” will keep your money away from the U.S. government? Maybe not anymore.

The U.S. Treasury Department and Swiss officials announced Friday they had reached an agreement to share tax information to curb tax evasion in the U.S.

The agreement between the U.S. and Switzerland would strengthen rules under the Organization for Economic Co-operation and Development’s (OECD) model tax code to permit the maximum amount of information sharing to prosecute tax evaders.

“This Administration is committed to reducing off shore tax evasion to help ensure that all U.S. taxpayers are playing by the same rules,” Treasury Secretary Tim Geithner said in a statement. “This treaty will increase our ability to enforce our tax laws and will help bring an end to an era of offshore accounts and investments being used for tax evasion.”

Swiss banking laws have been known for their high standards of privacy for customers, making it easy to hide assets in Swiss banks.