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CoverStory election 2018
black money

tomer deposits, 1050 crore through other banks and
THE TWISTED 2640 crore.
The Income Tax department said in a tweet “India
FunD TRAIL will receive information of the calendar year 2018 in
respect of all financial accounts held by Indian resi-
dents in Switzerland. This will be a significant step in
The first tranche of details about financial the government’s fight against black money as the era
accounts of Indians in Swiss banks has of Swiss bank secrecy will finally be over”.
The tweet followed a meeting of the Swiss delega-
reached New Delhi under a new automatic tion led by Nicolas Mario Luscher, Deputy Head of Tax
exchange of information framework Division, State Sectt for International Finance, with
between the two countries. revenue Secretary Ajay Bhushan Pandey and senior

The sharing of the data that was prepared
by all Switzerland-based banks under a
direction from the Swiss government marks In a major boost to the
a significant milestone in the fight against
black money suspected to be stashed country’s fight against
abroad.
black money, the Indian
India figures among 75 countries
with which Switzerland’s Federal Tax tax authorities have
Administration (FTA) has exchanged
information on financial accounts within received information
the framework of global standards on AEOI.
regarding its citizens’
This is the first time that India has received
details from Switzerland under the AEOI
framework, which provides for exchange financial accounts in
of information on financial accounts that
currently active as well as those accounts Swiss banks as part of
that were closed during 2018.
an agreement between
Although a large portion of the first
tranche of data relates to accounts India and Switzerland
that have been already closed due to
fear of action, it can be quite useful for
establishing a strong prosecution case
against those who had any unaccounted tax officials of Central Board of Direct Taxes (CBDT). tightening their noose on individuals suspected to to bringing to book the people with dubious records,
especially in amassing illicit wealth. The top agenda
The automatic exchange of financial account infor-
wealth in those accounts. mation (AEOI) under Common Reporting Standard have amassed illicit wealth. These individuals largely on both countries’ lists, of course, is black money by
include businessmen associated with companies,
(CRS) is the result of these deliberations. including the dummy ones, in sectors ranging Indians in Swiss banks.
The data provides entire details of the Insiders at the meeting informed Tehelka that dur- from real estate, financial services, technology, and As per the current Swiss laws, anybody having
entire flow of funds to and from all the ing the 2-day meeting in New Delhi on August 29-30, telecom to paints, home decoration, textiles, engi- an account in Swiss bank is given an opportunity to
accounts that were active even for a single 2019, Indian officials and Swiss officials discussed neering goods, gems and jewellery, Officials involved appeal against sharing of information about their
day in the year 2018. So deposits and bilaterally exchange of information matters to expe- in the process of mutual administrative assistance accounts and deposits in these banks. A depositor can
transfers as well as all earnings including dite execution of tax information sharing requests between the two countries said. file the appeal in 30 days. Details including names
through investments in securities and other made by India in specific cases. The Swiss delegation Experts point out that of late Switzerland has been of depositors, actual remittance in accounts is made
asset classes can be examined. was affirmative in its approach, sources added. After trying hard to change public perception about Swiss only through the Swiss government federal gazette
The information exchange is governed by signing the global automatic exchange of information banks as being a safe haven for stashing black money notifications after allowing the opportunity of an
strict confidentiality clauses, and the FTA framework, the Swiss authorities are in the process of overseas. During elections in India, political parties appeal to the affected person.
sharing details of at least 50 Indian nationals having to gain brownie points to nail rivals raise the issue. Sources said that the current success of receiv-
accounts in Switzerland-based banks, with regula- India and Swiss have also strengthened their bilateral ing information from the Swiss bank authority is a
tory and enforcement agencies in the two countries economic ties to increase cooperation when it comes major milestone in the government’s fight against

tehelka / 15 november 2019 18 www.tehelka.com Tehelka / 15 november 2019 19 www.Tehelka.com