ZURICH (Reuters) - Swiss private banks are banning their top executives from traveling abroad, even to France and Germany, because of fears they will be detained as part of a global crackdown on bank secrecy, the Financial Times reported.

The newspaper quoted an unnamed head of a leading private bank in Geneva as saying steps by countries like the United States and Germany to fight tax evasion meant banks felt they had to limit travel to protect employees.

It cited four unnamed sources in the Geneva private banking industry as saying some banks were introducing total travel bans for staff, even for neighboring European countries.
More here memex.naughtons.org

Controversial tax breaks for foreigners, particularly the lump sum tax, regularly make the headlines in Switzerland and abroad.

Voters in canton Zurich decide this Sunday on a proposal by the political left to scrap the flat tax rate for wealthy foreigners.

Recent attempts on a nationwide level to do away with the special fiscal treatment have failed. But a proposal pending in parliament could receive a boost if the Zurich ballot is passed.

Opponents of the lump sum system argue it is unjust to apply different legal standards, encourage tax evasion and contribute to raising property prices in affluent regions.

They point out that wealthy Swiss citizens are not eligible for the same arrangement as they are taxed according to their income and wealth. Rich foreigners benefit from a flat rate, which allows savings of up to 90 per cent in comparison.  more