Tax evasion: Swiss to amend laws
Switzerland said that it will amend its laws to accommodate India's demand for providing it with the list of tax evaders who have parked money in its banks.
By ET Bureau |
NEW DELHI: Switzerland on Wednesday said that it will amend its laws to accommodate India���s demand for providing it with the list of tax evaders who have parked money in its banks.
���We will amend the Double Taxation treaty to include tax evasion to prevent misuse ,��� Phillippe Welti, the Swiss ambassador to India told a news channel.
Union finance minister Pranab Mukherjee had indicated that India would begin talks with Switzerland in December over amending a double-taxation agreement. He had said the government was not interested in a ���roving inquiry��� over unaccounted money stashed in Swiss banks.
���It was agreed that we should follow the model code of the OECD (Organisation for Economic Co-operation and Development) in respect of taxations and exchange of information part. We have agreed to initiate for the amendment of the relevant clause on taxes where the exchange of information can take place,��� the minister had said.
A revised agreement, incorporating the principles of Article 26 of the OECD���s Model Tax Convention, would allow Switzerland to exchange information on all tax matters, including cases of tax evasion and not just criminal tax fraud as was the case till now.
Switzerland had recently reached an agreement with the US to give that country���s Internal Revenue Service details of 4,450 clients who Washington suspected of evading taxes. The Swiss Banks Association (SBA) had earlier said that Swiss Law does not permit fishing expeditions , or indiscriminate trawling through bank accounts in the hope of finding something interesting .
Swiss bankers began disclosing the identity only after they were presented with evidence of terror finance after the 9/11 attack. The banks also came under pressure after the global meltdown of September 2008. At the G-20 meeting in London, the finance ministers of developing and developed countries called for concerted measures to crack down on tax havens.
���We will amend the Double Taxation treaty to include tax evasion to prevent misuse ,��� Phillippe Welti, the Swiss ambassador to India told a news channel.
Union finance minister Pranab Mukherjee had indicated that India would begin talks with Switzerland in December over amending a double-taxation agreement. He had said the government was not interested in a ���roving inquiry��� over unaccounted money stashed in Swiss banks.
���It was agreed that we should follow the model code of the OECD (Organisation for Economic Co-operation and Development) in respect of taxations and exchange of information part. We have agreed to initiate for the amendment of the relevant clause on taxes where the exchange of information can take place,��� the minister had said.
A revised agreement, incorporating the principles of Article 26 of the OECD���s Model Tax Convention, would allow Switzerland to exchange information on all tax matters, including cases of tax evasion and not just criminal tax fraud as was the case till now.
Switzerland had recently reached an agreement with the US to give that country���s Internal Revenue Service details of 4,450 clients who Washington suspected of evading taxes. The Swiss Banks Association (SBA) had earlier said that Swiss Law does not permit fishing expeditions , or indiscriminate trawling through bank accounts in the hope of finding something interesting .
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Swiss bankers began disclosing the identity only after they were presented with evidence of terror finance after the 9/11 attack. The banks also came under pressure after the global meltdown of September 2008. At the G-20 meeting in London, the finance ministers of developing and developed countries called for concerted measures to crack down on tax havens.
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