Swiss Federal Administrative Tribunal Rules Against Transfer of Data From Swiss Bank to the United States

 On January 6, 2014, the Swiss Federal Administrative Tribunal, which hears cases of appeal against decrees issued by Swiss federal authorities, issued a decision, ruling that the Swiss Federal Tax Administration (SFTA) has illegally granted the U.S. Internal Revenue Service request for administrative assistance submitted on April 17, 2013, concerning the disclosure of bank account data of clients of Julius Baer.  The Tribunal explained that the IRS request does not fulfill the level of detail required for group requests, for which administrative assistance can be granted, and forbidden “fishing expeditions”.  The court’s decision affirmed the appeal of a Julius Baer.  As a result, Julius Baer must not disclose the information to the IRS.[1]