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LATEST NEWS UPDATES | Don’t come on fishing trips, warns Berne-Ashis Ray

Don’t come on fishing trips, warns Berne-Ashis Ray

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published Published on Aug 16, 2012   modified Modified on Aug 16, 2012
-The Times of India

Indian government would be in serious breach of its international obligations if it discloses names of Indians having Swiss bank accounts, other than being compelled to do so by the judiciary.

Speaking to TOI against the backdrop of the recent agitations by Anna Hazare and yoga guru Baba Ramdev for recovery of black money, a spokesman for the federal finance ministry in Switzerland said India "cannot make public" information supplied to it by Berne.

In the double taxation and avoidance agreement (DTAA) — which was amended earlier this year to make it slightly more lenient — Article 26 stipulates that "any information received shall be subject to a secrecy clause, whereby the information contained shall be treated as secret", other than being disclosed in judicial proceedings or verdicts.

The bilateral understanding on "liberal interpretation" of the DTAA since, provides for a less stringent furnishing of an individual's data. At the same time, either the name of the person or an account number has to be provided by Indian authorities for their Swiss counterparts to respond with information of deposits in banks, financial institutions or funds.

Article 26 in the revised DTAA states "the two countries (namely, India and Switzerland) shall exchange information as is 'foreseeably relevant'." But specific data, such as a name of the person being investigated coupled with address, date of birth or tax identification number is still needed. The Swiss finance ministry spokesman added that even an account number would suffice.

But he emphasised that Indian authorities must be armed with "concrete suspicions" of tax evasion or fraud by its nationals for the Swiss government to release information pertaining to any alleged black money being held in Switzerland. The spokesman underlined India cannot embark on "a fishing expedition" on the matter. This remains the case even after the DTAA was altered to enhance the scope of exchange of information between the two countries.

Nevertheless, there has reportedly been recent cooperation on the part of the Swiss - which the spokesman would not confirm. It is also learned that the total sum of money held by Indian nationals in Switzerland is nowhere near figures being wildly claimed by agitators. At the same time, Switzerland is not the only tax haven fancied by tax-dodgers.

The Times of India, 16 August, 2012, http://timesofindia.indiatimes.com/india/Dont-come-on-fishing-trips-warns-Berne/articleshow/15510889.cms


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