Switzerland calls Biden’s ‘tax haven’ comment ‘inappropriate, completely outdated’
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President Joe Biden, in his first address to the joint session of the United States Congress on April 28, called on companies benefiting from tax havens ranging from “Switzerland to Bermuda to the Cayman Islands”, saying that “it was not right” and promising taxes to pay their fair share. “
Switzerland may have a reputation as a coveted sanctuary for tax authority crooks, but the country’s officials have disputed recent comments by US President Joe Biden, the Associated Press reported.
In his first speech to a joint session of Congress on April 28, Biden stressed the need for wealthy Americans and businesses to pay their fair share of taxes, lamenting the fact that many of them avoid doing so by using tax havens in ‘Switzerland and Bermuda and the Cayman Islands. “
“Switzerland considers that this promotion of Switzerland as a tax haven by the United States is inappropriate and completely outdated,” said the spokesperson for the Swiss Federal Department of Finance, Isabelle Roesch, in an e-mail.
According to Roesch, since 2019, âinternational organizationsâ have repeatedly affirmed that Switzerland meets all international tax standards. The latter presupposes reporting and an exchange of information on the issue.
In addition, the spokesperson added that a Swiss tax reform carried out in 2019 scrapped “all tax models criticized by the Organization for Economic Co-operation and Development (OECD)”.
Referring to Joe Biden’s remarks, Roesch said Swiss officials told the US Treasury that the new administration had already made similar statements.
“ Level of hypocrisy ”
President Biden’s call to get out of offshore tax havens has been called hypocritical by anti-corruption activists, who say he should focus on the tax situation closer to home.
According to London-based Tax Justice Network, the United States has overtaken Switzerland in a global ranking of the countries most complicit in helping individuals hide their finances. In fact, it is second in the rankings, after the Cayman Islands.
“Every time the United States points the finger at Switzerland (about tax havens), there has always been a level of hypocrisy,” said Tax Justice Network expert Nick Shaxson.
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A visit by US Senator Joe Biden to the USSR. US Senator representing Delaware and member of the US Senate Committee on Foreign Relations Joe Biden, left, and USSR Supreme Soviet Presidium Andrei Gromyko during their meeting in the Kremlin.
“It sounds even more hypocritical of Biden,” he added, alluding to the president’s ties to Delaware, which is particularly attractive to financial firms because of its corporate-friendly usury laws. and its low taxation.
Biden represented the state in the Senate for 36 years – he has a reputation for allowing corporations and high net worth individuals to hide the beneficiaries of anonymous shell companies registered there.