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India steps up pressure on Switzerland to share bank information on tax evaders

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Finance Minister P Chidambaram
Finance Minister P Chidambaram

Details being sought on some accounts held by Indians in HSBC’s Swiss branches

Taking a strong stance, India has warned Switzerland that reluctance to share tax related information may impact economic co-operation between the two countries.

India is pursuing Switzerland to share information on certain accounts held by some Indians in HSBC’s Swiss bank branches. These were account details of those against whom cases of ‘incriminating evidence of tax evasion’ have been found here.

But, the Swiss authorities have been reluctant to share information. This led to the Finance Minister P Chidambaram writing a strongly worded letter to the Swiss Finance Minister Eveline Widmer Schlumpf.

“Effective exchange of tax related information is an extremely important constituent of the economic co-operation between India and Switzerland and the rights and duties agreed to in the DTAC (Double Taxation Avoidance Convention) between our two countries in regard to such exchange of information should be fully understood and honoured by Switzerland,” Chidambaram’s letter dated April 29. Chidambaram’s letter was in reply to Swiss Minister’s letter sent on April 7.

Chidambaram reiterated that India would continue to take a position at the Global Forum about Switzerland lacking legal and regulatory framework for an effective exchange of information. He also said that Switzerland’s interpretation that it cannot share information as per India’s request was not in accordance with international standards.

Under global pressure, Switzerland has agreed to ease its banking secrecy laws recently and it also signed a revised tax treaty with India in 2011 to facilitate greater flow of information about alleged black money.

However, it has refused to share information about the accounts mentioned in the so-called ‘HSBC list’ which India had received from France through a bilateral treaty.

France had received that list after data was stolen by a disgruntled HSBC employee in 2011 and those names eventually found their way to the tax authorities across the world including India.

The Finance Minister further said Switzerland was putting unusual pre-conditions for sharing information which appear to be ‘intended to refuse assistance’ and such refusal amounts to Swiss authorities providing protection to the people ‘found to have evaded Indian taxes’.

Switzerland has rejected India’s request on the pretext that the information was being sought on the basis of stolen data and it claims that its local laws do not permit exchange of information in such cases where some criminality may be involved for getting the data.

Countering Switzerland’s claims, Chidambaram said that India’s request “is based on data obtained legally under a DTAC with a third country and India is not party to commission of any criminal offence in Switzerland in this regard.”

(This article was published on May 2, 2014)
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Union Budget 2014-15 Highlights

  • Following are the highlights of the Union Budget 2014-15 presented by Finance Minister Arun Jaitley in Parliament on July 10, 2014
  • Income-tax exemption limit raised by Rs 50,000 to Rs 2.5 lakh and for senior citizens to Rs 3 lakh
  • Exemption limit for investment in financial instruments under 80C raised to Rs 1.5 lakh from Rs 1 lakh.
  • Investment limit in PPF raised to Rs 1.5 lakh from Rs 1 lakh
  • Deduction limit on interest on loan for self-occupied house raised to Rs 2 lakh from Rs 1.5 lakh.
  • Committee to look into all fresh tax demands for indirect transfer of assets in wake of retrospective tax amendments of 2012
  • Fiscal deficit target retained at 4.1% of GDP for current fiscal and 3.6% in FY 16
  • Rs 150 crore allocated for increasing safety of women in large cities
  • LCD, LED TV become cheaper
  • Cigarettes, pan masala, tobacco, aerated drinks become costlier
  • 5 IIMs to be opened in HP, Punjab, Bihar, Odisha and Rajasthan
  • 5 more IITs in Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala.
  • 4 more AIIMS like institutions to come up in AP, West Bengal, Vidarbha in Maharashtra and Poorvanchal in UP
  • Govt proposes to launch Digital India’ programme to ensure broad band connectivity at village level
  • National Rural Internet and Technology Mission for services in villages and schools, training in IT skills proposed
  • Rs 100 cr scheme to support about 600 new and existing Community Radio Stations
  • Rs 100 cr for metro projects in Lucknow and Ahmedabad
  • Govt expects Rs 9.77 lakh crore revenue crore from taxes
  • Govt’s plan expenditure pegged at Rs 5.75 lakh crore and non-Plan at Rs 12.19 lakh crore.
  • Rs 2,037 crore set aside for Integrated Ganga Conservation Mission called ‘Namami Gange’
  • Kisan Vikas Patra to be reintroduced, National Savings Certificate with insurance cover to be launched
  • FDI limit to be hiked to 49% pc in defence, insurance
  • Disinvestment target fixed at Rs 58,425 crore
  • Gross borrowings pegged at Rs 6 lakh crore
  • Contours of GST to be finalised this fiscal; Govt to look into DTC proposal.
  • ‘Pandit Madan Mohan Malviya New Teachers Training Programme’ launched with initial sum of Rs 500 crore
  • Govt provides Rs 500 crore for rehabilitation of displaced Kashmiri migrants
  • Set aside Rs 11,200 crore for PSU banks capitalisation
  • Govt in favour of consolidation of PSU banks
  • Govt considering giving greater autonomy to PSU banks while making them accountable
  • Rs 7,060 crore for setting up 100 Smart Cities
  • A project on the river Ganga called ‘Jal Marg Vikas’ for inland waterways between Allahabad and Haldia; Rs 4,200 crore set aside for the purpose.
  • Govt proposes Ultra Modern Super Critical Coal Based Thermal Power Technology
  • Expenditure management commission to be setup; will look into food and fertilizer subsides
  • Impasse in coal sector will be resolved; coal will be provided to power plants already commissioned or to be commissioned by March 2015
  • Long term capial gains tax for mutual funds doubled to 20%; lock-in period increased to 3 years
  • Rs 4,000 cr set aside to increase flow of cheaper credit for affordable housing to the urban poor/EWS/LIG segment.
  • EPFO to launch the ‘Uniform Account Number’ service to facilitate portability of Provident Fund accounts
  • Mandatory wage ceiling of subscription to EPS (Employee Pension Scheme) raised from Rs 6,500 to Rs 15,000
  • Minimum pension increased to Rs 1,000 per month
  • Union Budget 2014: List of products getting cheaper/ costlier

  • Finance Minister Arun Jaitley today spared the common man from price hikes by keeping duties on commonly used day-to-day items unchanged but made it costlier for smokers and tobacco consumers with a steep increase in excise rate in tax proposals in Budget 2014—15.
  • Following is a list of what will be cheaper and costlier:
  • YOU WILL PAY LESS FOR
  • CRT television
  • LED/LCD TVs especially below 19 inch
  • Footwear priced between Rs 500 to Rs 1,000 per pair
  • Soaps
  • E—book readers
  • Desktop, laptops and tablets
  • RO based water purifiers
  • LED Lights, fixtures and lamps
  • Pre forms of precious and semi—precious stones
  • Sports Gloves
  • Branded petrol
  • Matchbox
  • Life micro insurance policies
  • HIV/AIDS drugs and diagnostic kits
  • DDT insecticides
  • YOU WILL PAY MORE FOR
  • Cigarettes
  • Aerated drinks with sugar
  • Pan masala
  • Gutka and chewing tobacco
  • Jarda scented tobacco
  • Radio Taxi
  • Imported electronic products
  • Portable X—ray machines
  • Half cut/broken diamonds.

  • DATA BANK

    Exchange Rate

    Dollar Spot Forward Rate

    Open-Ended Mutual Funds

    MCX-SX Currency Futures

    NSE Currency Futures


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