Now Modi can track Indians holding Swiss Bank accounts
Blackmoney trail: The federal council said it will prepare a situation report before the first exchange of data, which is planned for autumn 2019.
Switzerland on Friday ratified automatic exchange of financial account information with India. This is a move that marks the end of the banking secrecy in Switzerland which has for long been regarded as a haven for black money.
This move means that India can automatically access transactions made by Indians in Swiss banks after September 2019 and information of accounts held by Indians residing in Switzerland for 2018 and the subsequent years.
The decision comes after hectic parleys between India and Switzerland for the introduction of AEOI (Automatic Exchange of Information) on tax matters under the guidance of G20, OECD and other global organisations.
The
Swiss
Federal
Council,
which
is
the
top
governing
body
of
the
European
nation,
said
the
proposal
to
introduce
AEOI
with
India
and
others
was
"met
with
widespread
approval
from
the
interested
parties
who
voiced
their
opinions
in
the
consultations".
"In
concrete
terms,
the
AEOI
will
be
activated
with
each
individual
state
or
territory
by
means
of
a
specific
federal
decree
within
the
framework
of
this
dispatch,"
it
added.
Friday's
decision
is
not
subject
to
any
referendum
--
which
implies
there
should
be
no
further
procedural
delay
in
its
implementation.
The exchange of information will be carried out based on the Multilateral Competent Authority Agreement (MCAA) on the Automatic Exchange of Financial Account Information, which is in turn based on the international standard for the exchange of information developed by the Organisation for Economic Co-operation and Development (OECD).
The federal council said it will prepare a situation report before the first exchange of data, which is planned for autumn 2019. "In the process, it will be checked whether the state sand territories concerned effectively meet the requirements under the standard, especially those concerning confidentiality and data security.
In the past, India has taken several steps to sort out the issue of black money. These steps have included policy-level undertakings, enforcement of ground-level action, introduction of stringent legislative and administrative structures and usage of information technology.
In 2015, the government enacted a new law - 'The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015' to specifically address the menace of black money in foreign accounts.
OneIndia News