The US Treasury Department will begin revising a tax treaty with

Switzerland, which has pledged to increase transparency and help crack down on tax evaders with money in Swiss banks, according to media reports.

The Swiss government has agreed to cooperate with international tax investigations of wealthy foreigners accused of hiding money in the country, although

Switzerland insists its move does not compromise banking client confidentiality.

The talks come at a time when business relations between the
US and

Switzerland have been under strain. UBS, the world’s largest wealth manager, has agreed to pay a $780 million fine over criminal charges that it helped wealthy

US citizens evade taxes. UBS is, however, refusing to hand over details on up to 52,000
US clients to the

US authorities in a separate civil action initiated by the Internal Revenue Service.

"We welcome moves by

Switzerland to implement international standards by agreeing to revise the US-Switzerland tax treaty," Timothy Geithner, Treasury Secretary, was reported saying yesterday. "I look forward to swift conclusion of an agreement ... and I will continue to demand transparency from countries on behalf of American taxpayers.”

The Treasury Department said negotiations between the two nations will begin on 28 April in

Berne,
Switzerland.

A former UBS banker, Bradley Birkenfeld, pleaded guilty last year to fraud conspiracy charges in

Florida. He has been cooperating with US investigators and has not yet been sentenced.