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CoverStory election 2018
black money

black money stashed abroad, the actual crackdown
would begin next year after the next exchange of
Swiss bank account details is to take place on Septem-
officials refused to disclose specific details ber 2020. India is now among the 75 countries with
on the number of accounts or about the which Switzerland’s Federal Tax Administration (FTA)
quantum of financial assets associated with has exchanged information on financial accounts
the Indian clients of Swiss banks. within the framework of global standards on AEOI.
The AEOI comes into picture only in case of accounts
The AEOI only relates to accounts that are in the name of Indians.
officially in the name of Indians and they The AEOI came into force from January 1, 2017,
might include those used for business and with 36 countries and is currently applicable in Swit-
other genuine purposes. zerland. Then there is an authority called the Global
Forum of the Organisation for Economic Coopera-
The exchanged details include
identification, account and financial
information. These include name, address,
state of residence and tax identification Under AEOI framework,
number, as well information concerning the
financial institution, account balance and Switzerland would
capital income.
share with Indian tax
The next exchange, according to FTA,
would take place in September 2020. authorities information
including bank account

numbers, credit balance

News iN and all kinds of financial

Numbers income for each Indian
client of every Swiss
3.1 mIllIOn financial institution
The Switzerland’s Federal Tax
Administration (FTA) has sent information
on around 3.1 million financial accounts to
the partner states and received information before 2018, for which Switzerland is in the process of land buckling under international pressure to open
on around 2.4 million from them. tion and Development that oversees the EOI imple- sharing details with India under an earlier framework its banking sector for scrutiny to clear the long-held
mentation. The Federal Tax Administration Overall of mutual administrative assistance as Indian author- perception of Swiss banks being safe haven for undis-
100 cASES has by far passed on information about around 3.1 ities had provided prima facie evidence of tax-related closed funds. Switzerland agreed to AEOI with India
There are at least 100 cases of older million financial accounts to the partner states and wrongdoing by those account holders. These relate after a long process, including a review of necessary
received information on around 2.4 million from the
to people engaged in various businesses like auto
legal framework in India on data protection and
accounts held by Indians, which might partner states. components, chemicals, textiles, real estate, diamond, confidentiality.
have been closed before 2018, for which The data received by India can be quite useful for jewellery and steel products, etc. The ball now is in the court of the prosecution. It
Switzerland is in the process of sharing establishing a strong prosecution case against those A Swiss delegation was in India in August before the must use the data received to trace unaccounted
details with New Delhi under an earlier who have any unaccounted wealth, as it provides first set of details could get shared and the two sides wealth and bring it to the book. Those who figured in
framework of mutual administrative entire details of deposits and transfers as well as of all also discussed possible steps to expedite execution the HSBC list, Panama and Paradise papers and now
assistance. earnings, including through investments in securities of tax information-sharing requests made by India in the Swiss bank list must be brought to book and
and other assets. in specific cases. There are allegations that many probe must reach its logical conclusion. They must
Besides, there are at least 100 cases of older natives might have closed their accounts after a meet their nemesis.
accounts held by Indians that might have been closed global crackdown on black money led to Switzer- letters@tehelka.com

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