Without citing its sources, Swiss newspaper SonntagsZeitung said that if tax offences were reclassified as money laundering, lawyers, tax advisors, accountants and bankers who are implicated in such offences could get up to three years in jail.
AFP reports that in addition, the country's cherished banking secrecy laws would not hold in arguing against giving assistance to foreign tax authorities, as the rule is lifted in money laundering cases.
Switzerland came under pressure from the Organisation for Economic Cooperation and Development in 2009, when it put Switzerland on a 'grey list' of tax havens for not being cooperative enough.
To get off this list, Bern had to negotiate a series of accords on sharing tax information.
Swiss banks have been hit by a series of disputes with several countries, including the United States, Germany and France, over allegations that their nationals have hidden funds in Swiss bank accounts to evade taxes.
On Thursday, the Swiss government vowed to reject undeclared assets from foreigners, in a move to counter tax evasion and clean up the reputation of Alpine state's banking sector.