LE TEMPS   November 11, 2002  (automatic Google translation of French original)
 
ECONOMY: 
"Tax information exchange serves the spooks" 

Myret Zaki 
 

BANK SECRECY. Anton Keller sharply criticizes the detractors of tax competition.  According to the secretary of the Swiss Investors Protection Association, those working for an automatic exchange of tax information not only undercut fiscal sovereignty, free enterprise and financial privacy but open the gates for economic espionage. 
Anton Keller is not a banker, but a man of influence. And while others are concerned about decisions by European Union affecting Switzerland - currently focussing on the EU's savings tax directive - the secretary of the Swiss Investors Protection Association SIPA/ASDI (www.solami.com/gold.htm) places his bets on decision-makers in Washington.  There, over the years, he has evolved in the center of a pléiade of lobbyists pursuing objectives which are of direct interest to Switzerland and its rôle in the gobal banking community.  His recipe: to launch and push suitable ideas among those which can make a dent, and to let others take credit for whatever success is achieved.  His motivation?  The 62 years old citizen of the Canton of Appenzell finds himself compelled to raise his voice when he sees fundamental principles and liberties violated, be it by public or private bureaucrats.  And he may jump into action when he recognizes an opportunity to defend and promote the citizen's private sphere, as has been the case with what, since 1986, he is fighting as the OECD's orwellian outgrowths.  In banking circles here and abroad Anton Keller is appreciated but, symptomatically, he has few affinities with the Swiss Bankers Association (ASB).  His efforts to-date were financed primarily by a few bankers in Geneva and Zurich and by some Swiss industrialists.  His characteristic "guérillero"-style lobbying has enabled him to communicate effectively with foreign decision-makers and to obtain political turn-arounds in favor of Swiss interests even in seemingly hopeless cases.  Anton Keller's links with the United States go back to 1960 when, as an exchange student, he also followed a training for reserve officers of the US Air Force which gave him a unique "opportunity to study the American psyche, to discover the value structure of this pioneer society, and thus to better understand by what Americans are motivated and driven".  In this interview with Le Temps, Anton Keller discusses his lobbying strategies in favour of more individual responsibility, liberty and privacy particularly in the United States, Europe and Switzerland.  And he speaks up for tax reform, including a Europe-wide withholding tax not at 35 but at 20 percent as a possible result of the current negotiations between Switzerland and the UE. 

Le Temps: Will the republican victory reinforce your combat against the European directive on the taxation of the saving and in favour of the bank secrecy? 
Anton Keller: It is indeed an easier situation where the American leaders will be more at ease to reactivate the forces of liberalism and to support the individual interests of the citizen. This philosophy again has more chances - in spite of the very major effects of September 11 - vis-a-vis the projects too easily imposed by bureaucrates who hid behind the slogan of the antiterrorism to justify all that would facilitate their private diary, that it is related or not to the antiterrorist cause. 

- What did you obtain through the lobbying in Washington? 
- We already almost acquired on the level of the American decision makers a guarantee of their position against the automatic exchange of information which the UE wants to impose. We play on fibre of freedoms and the several liabilities. One seeks to wake up the spirits of the American decision makers to the importance of the protection of the private, incomplete sphere if it excludes that from the financial private sphere. We intervene with the Congress in the republican camp, but there are also fine experts among the democrats. We must polish, to adapt the speech to the democrats or the republicans, but the potential of contact was present on the two sides when we developed the strategy four years ago about the attack against the bank secrecy. 
Moreover, we hope well that the United States could go until sanctioning OECD, by depriving it of their financing until it returns to its vocation first to defend the principles of liberalism and tax competition. Secret work of its tax commission and its W8 group on tax avoidance is done out of any democratic control and certain mandates which obtained the civils servant who work there deviate of the initial orientation of this organization which should be pro-companies, pro-freedoms and pro-sovereignty. 

- the lobbying in Washington it is more effective on the UE than that applied directly in Brussels? 
- Yes, if we correctly do our work on our premises and in Washington, we do not have anything to fear of Europe which for a long time will be still guided by the arrogance of bureaucrates rather than by democratic authorities. I did not consider it necessary to invest me in the lobbying of Brussels. 

- Which is your analysis of European hardening in favour of an automatic exchange of information? 
- They are mainly American bureaucrates who had already promoted this system of tax harmonization which goes back to 1986, year of publication of the Convention of OECD on the mutual administrative tax matter assistance. One found there already all these aberrations and it is as of this year that we had begun our combat. We had conducted campaign and completely neutralized this convention at the end of two years, even if it ended up coming into effect in 1995. We had not received an unspecified support of the large Swiss banks, which applauded afterwards. Actually, only some personalities had supported us on an individual level. We had in very 200 000 francs. Today, with the GAFI (Group of financial action on the bleaching of capital, note), it is exactly the same thing under another title. And with Brussels, it is still the same combat. 

- Which effects would have the equivalent proposal for a deduction at the source in Switzerland? 
- If a rate of 20% is adopted, that could even become a general alternative. The 35% applied to the investors in Switzerland are very high. To lower this rate with 20% would be beneficial too for the Swiss ones. It is the only harmonization at the tax level which I could conceive like acceptable. 

- Which is the probability that the UE issues a tax amnesty according to the Italian model? 
- an amnesty will never have the discounted effect if there is not in unconscious customers of our banks a dissatisfaction, a dissatisfaction vis-a-vis a possible negligence by our banks with the principles which made the success of our banking tradition. However, the large banks sold off what made our force while agreeing too quickly to become tax officials American when they yielded by sacrificing our laws to apply those American to Qualified Intermediaries (IQ). These laws force the Swiss banks to identify the American citizens among their investors to take a tax with the source on their incomes with the profit of the American tax department. 

- Which are your relations with the ASB? 
- Dominated by the large banks, the ASB does not represent really all the banks in Switzerland, nor the heritage and the real vocation of the money market. Consequently, the combat and the procedures diverge occasionally. The ASB always showed the Swiss flag in Washington, me I make the opposite, I am done discrete. We find ourselves only on the finishing line. Sometimes, they receive me and sometimes it is me which receive them. 

- By bringing you closer Washington, do you put London in a delicate situation? 
- the true reasons of the position of London in favour of the automatic exchange are the competition which represents the Swiss money market. Then there are unavowed reasons, including the interest to use tax information for the services of information. In the United States, one also finds of bureaucrates who support London in this field. The apparatuses of the services of information push in this direction. These forces should be neutralized. In this respect, the war against terrorism is also a "mask-sex" aiming at the same interests. We have formidable adversaries. The democratic mechanisms of monitoring actually play less and less in political systems like the United States and the international organizations. 

- You work only through American lobbies and not as a representative of the ASDI? 
- Yes. We owe the success of our operation with a reinforced discretion: we never act near the Congress under Swiss banner, but pass by American interests. We work with associations such as Center for Freedom and Prosperity (CFP), Discovery Institute, Heritage Foundation, Cato Institute, Competitive Enterprise Institute and others. We seek to mobilize these networks, very active at the parliamentary level. But attention: if you come to see them with a vague idea, their specialists make you an estimate - very expensive -, and then seek to use your idea according to their own program. It is what arrives at our traditional banking associations: they seek a network (lawyers, associations), but do not arrive with a proven methodology already on the level. We understood that it is necessary to use these networks to the maximum as instruments of lobbying. We develop our project, our resources are used in a dominating way [ for the analysis of the problems, the identification of the objectives, and the development of an action plan ], then we choose ourselves the specialists who will render us services in a "guerrilla" [ political ] very specific implying limited funds and actors. It is much more effective than if you seek to make you represent for your nonAmerican interests. With this traditional "marketing" of the carriers of the Swiss flag, one is entitled to results like those obtained at the time of the business of the funds in déshérence. 

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