Switzerland is attempting to sort out tax issues with Italy, Swiss Foreign Minister Micheline Calmy-Rey has assured an official Ticino delegation in Bern.

The Ticino cantonal government was in Bern for talks on ties with Italy. The delegation heard that the Swiss cabinet was hoping to resume talks with its southern neighbour on tax issues. The issue had also been the main topic of meetings between Calmy-Rey and Prime Minister Silvio Berlusconi in June.

Rome has sent out positive signals on the issue since then, the foreign ministry said. The Italian parliament has also adopted a series of motions calling on the Italian government to resume tax negotiations.

The Swiss cabinet wants to renegotiate the 1974 border tax accord with Italy, under which Ticino transfers to Rome 38.8 per cent of the tax deducted at source from the earnings of Italian cross-border workers. Ticino thinks the amount should be 12.5 per cent, as happens with Austria.

Ticino has blocked around SFr30 million ($33.9 milllion) that is due to Italy in protest.

A meeting is planned on Friday in the Italian Senate between the parliamentarians of the two countries as well as ambassadors and representatives of the banking sector and chambers of commerce, the Italian news agency Adnkronos said.

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