Sharing tax details: door for dialogue still open, says Swiss Finance Ministry
NEW DELHI, FEBRUARY 9:
The “door for dialogue” with India remains open despite the current “difficult environment” on the tax-related information sharing front, the Swiss Finance Ministry has said.
In a just released annual report on International Financial and Tax Matters 2015, Switzerland has admitted that its relations with India remain tense due to the Alpine country’s refusal to exchange information on requests based on “data obtained illegally”.
The declaration that the “door for dialogue” is open is significant as it comes at a time when the Indian Government is stepping up its fight against tax evasion and fraud.
The annual report also highlights that the October 15 meeting (between Indian and Swiss revenue authorities) at Berne took place on Switzerland’s initiative.
The meeting — which the annual report noted happened in a positive atmosphere — had ended with a joint statement identifying the basis for solutions concerning the bilateral issues under discussion, according to the Swiss Finance Ministry (Federal Department of Finance).
Relations between Switzerland and India on tax matters have once again come into the spotlight with the new leaked HSBC list of Swiss bank account holders from 200 countries, including India.
To get back the black money stashed by Indians in Swiss banks, the Indian Government had in November 2010 signed a revised double taxation avoidance agreement. In 2011, the French Government had handed over (shared) to the Indian Government a list of 628 Indians holding Swiss bank accounts, which has been obtained from a former HSBC employee who had turned a whistleblower.
Citing local laws, the Swiss Government had refused to share with India the complete details of these accountholders on the ground that requests were based on “data obtained illegally”.
India had maintained that it did not obtain data in an unauthorised manner and that Switzerland was obliged to share information under the double taxation avoidance agreement.
On Monday, besides this list of 628 Indians, the names of another 567 Indians with Swiss bank accounts became public following a report by the International Consortium of Investigative Journalists.
