No banking secrecy means higher legal costs

Swiss Justice Minister Eveline Widmer-Schlumpf wants to lift banking secrecy in Switzerland. But the consequences of such a move would be devastating, writes the weekly Die Weltwoche: "Litigation would increase both for those affected and for the state. An avalanche of court cases would mean a dramatic rise in legal and counselling fees, and the state would have to employ an army of prosecutors and tax investigators. And every conviction would mean a criminal record for those involved. Relatively minor cases would be punished by limited fines, while aggravated cases would receive high fines and prison sentences. ... Particularly threatened are the SMEs [small and medium-sized enterprises] with just a few employees. To avoid committing tax fraud they will have to oblige their employees to record every kilometre they drive and every bite they eat. That means higher internal controls, entailing a needless rise in administration costs."

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