Why did Switzerland become a tax haven?

17 13 Geneva city Council stipulates that bank personnel should register customer information, but they should not disclose it to any third party other than depositors without the approval of the city Council. This became the earliest predecessor of the Swiss bank secrecy law. For 300 years, Switzerland has been strictly implementing its bank secrecy system, so it is world-famous. The Swiss Federal Bank and Savings Bank Act 1934 even clearly stipulates that it is a crime to violate bank secrecy rules, and bank employees will be held accountable for life even if they leave their jobs. This system makes all kinds of sources of funds feel safe and has played a positive role in history. However, Switzerland's strict bank secrecy law not only promotes the development of Switzerland's financial industry and national economy, but also facilitates criminals to hide or cover up the proceeds of crime. Some critics believe that this is essentially because fraudsters, tax evaders and dictators have paid generous service fees to Swiss banks, and Switzerland has prospered, while the bad guys' funds have been protected.

Speaking of tax havens, islands such as Cayman Islands, Bermuda and British Cayman Islands often become good places for many enterprises to register shell companies to evade taxes. If it is understandable that these small island countries lack natural resources, have a small population, have a weak economic foundation, and their financial information and tax system are opaque, resulting in extremely low or even zero tax rates, then why does Switzerland, which has many international brands and world-renowned UBS Group AG and lives inland, become a tax haven? In addition to Switzerland's high welfare and low tax rate, it is also inseparable from the bank secrecy system implemented in Switzerland. The implementation of the bank secrecy system has made the financial industry a pillar industry in Switzerland and made Switzerland a global inland financial center. According to the data released by Swiss Private Bankers Association in June this year, 5438+ 10, Switzerland holds one third of the world's private assets. To some extent, Switzerland is willing to provide low tax rates and strict bank secrecy to attract capital inflows, which makes Swiss banks known as the most trustworthy banks in the world.