Projet (Accord en)

(29) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person.

(30) An Entity is a “Related Entity” of another Entity if either Entity controls the other Entity, or the two Entities are under common control. For this purpose, control includes direct or indirect ownership of more than 50 percent of the vote or value in an Entity. Notwithstanding the foregoing, Switzerland may treat an Entity as not a Related Entity of another Entity if the two Entities are not members of the same expanded affiliated group as defined in section 1471(e)(2) of the U.S. Internal Revenue Code.

(31) The term “U.S. TIN” means a U.S. federal taxpayer identifying number.

(32) The term “Controlling Persons” means the natural persons who exercise control over an entity.

In the case of a trust such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions.

The term “Controlling Persons” shall be interpreted in a manner consistent with the Financial Action Task Force Recommendations.

2. Any term not otherwise defined in this Agreement shall, unless the context otherwise requires or the Competent Authorities agree to a common meaning (as permitted by domestic law), have the meaning that it has at that time under the law of the Party applying the

Agreement, any meaning under the applicable tax laws of that Party prevailing over a

meaning given to the term under other laws of that Party.

Part B – Obligations of Switzerland

Article 3 Directive to Swiss Financial Institutions

1. Switzerland shall direct all Reporting Swiss Financial Institutions to:

a) register with the IRS by January 1, 2014, and agree to comply with the

requirements of an FFI Agreement, including with respect to due diligence,

reporting, and withholding;

b) with respect to Preexisting Accounts identified as U.S. Accounts,

(i) request from each Account Holder the Account Holder’s U.S. TIN and a consent, covering irrevocably the current calendar year and automatically renewed for each successive calendar year unless revoked before the end of January of such year, to report and simultaneously inform the Account Holder through a letter of the Swiss Federal Tax Administration (FTA) that, if the U.S. TIN and such consent are not given, (1) aggregate information about the account shall be reported to the IRS, (2) information about the account may give rise to a group request by the IRS for specific information about the account, (3) in such case, the account information shall be