Fight against black money: India gets first tranche of Swiss bank account details
India has received the first tranche of details about first tranche of details about financial accounts of its residents in Swiss banks.
According to reports, India is among 75 countries with which Switzerland's Federal Tax Administration (FTA) has exchanged information on financial accounts within the framework of global standards on AEOI.
Meanwhile, India has recieved first tranche of Swiss bank account details of its nationals under a new automatic information exchange pact, a major milestone in the government's fight against black money stashed abroad. The next exchange would take place in September 2020.
However, this is the first time that India has received details from Swiss authorities under the AEOI framework, which provides for exchange of information on financial accounts, currently active as well as those accounts that were closed during 2018.
However, the information exchange is governed by strict confidentiality clauses, and the FTA officials refused to disclose specific details on the number of accounts or about the quantum of financial assets associated with the Indian clients of Swiss banks.
The FTA spokesperson said, 'The largest exchange was with Germany (in both directions), as was the case in the previous year. The FTA cannot provide any information on the amount of financial assets.' 'The communication of statistical data is subject to the confidentiality clauses as well.'
The spokesperson said, 'According to the international agreement in place, the exchanges have to take place within nine months after the end of the respective calendar year. This means the exchange takes place in September, except for corrections.' 'The exchanged information allows the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns.'