Common use of Voluntary Disclosure Clause in Contracts

Voluntary Disclosure. 1. Switzerland shall provide for a procedure which allows the beneficial owner as defined in Article 4 to avoid the retention specified in Article 1 by expressly authorising his or her paying agent in Switzerland to report the interest payments to the competent authority of that State. Such authorisation shall cover all interest payments made to the beneficial owner by that paying agent. 2. The minimum amount of information to be reported by the paying agent in case of express authorisation by the beneficial owner shall consist of: (a) the identity and residence of the beneficial owner established in accordance with Article 5; (b) the name and address of the paying agent; (c) the account number of the beneficial owner or, where there is none, identification of the debt-claim giving rise to the interest; and (d) the amount of the interest payment calculated in accordance with Article 3. 3. The Swiss competent authority shall communicate the information referred to in paragraph 2 to the competent authority of the Member State of residence of the beneficial owner. Such communications shall be automatic and shall take place at least once a year, within six months following the end of the tax year in Switzerland, for all interest payments made during that year. 4. Where the beneficial owner opts for this voluntary disclosure procedure or otherwise declares his or her interest income obtained from a Swiss paying agent to the tax autho- rities in his or her Member State of residence, the interest income concerned shall be subject to taxation in that Member State at the same rates as those applied to similar income arising in that State.