Black money: India to begin talks with Switzerland in December
Swiss Banks Association had said Swiss law and even OECD's Model Tax Convention do not permit fishing expeditions. Top 10 challenges for India
By PTI |
NEW DELHI: In the midst of a row over tainted money stashed in banks in Switzerland, the government on Tuesday said it will begin talks with that country in December for amending the relevant treaty and it was not interested in a "roving inquiry".
"We are pursuing with the Swiss authorities and after our persuasion they have agreed to discuss and begin the negotiations on the amendment of the avoidance of double taxation agreement in respect of the exchange of information.
"That first round of talks will take place sometime in December," Finance Minister Pranab Mukherjee said at a panel discussion organised by ET-Now.
The Swiss Banks Association had said Swiss law and even OECD's Model Tax Convention do not permit fishing expeditions, in other words, the indiscriminate trawling through bank accounts in the hope of finding something interesting.
"This means that India cannot simply throw its telephone book at Switzerland and ask if any of these people have a bank account here," SBA Head of International Communications James Nason had told PTI.
"We are fully aware of and we have no intention of having any roving enquiry," Mukherjee said, adding that it would pursue the matter on the basis of specific information to help the tax authorities nail the defaulters.
Switzerland had last week 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.
Mukherjee said the government would use whatever information it gets from the Swiss authorities, but the "secrecy clause of Swiss banking, they have again reiterated that it will be maintained."
He said after India appealed to the Swiss authorities, it was suggested that New Delhi should enter into negotiations for the amendment of the avoidance of double taxation agreement.
"It was agreed that we should follow the model code of the OECD in respect of taxations and exchange of information part, that we have agreed... we have (also) agreed to initiate for the amendment of the relevant clause on taxes where the exchange of information can take place," he said.
"We are pursuing with the Swiss authorities and after our persuasion they have agreed to discuss and begin the negotiations on the amendment of the avoidance of double taxation agreement in respect of the exchange of information.
"That first round of talks will take place sometime in December," Finance Minister Pranab Mukherjee said at a panel discussion organised by ET-Now.
The Swiss Banks Association had said Swiss law and even OECD's Model Tax Convention do not permit fishing expeditions, in other words, the indiscriminate trawling through bank accounts in the hope of finding something interesting.
"This means that India cannot simply throw its telephone book at Switzerland and ask if any of these people have a bank account here," SBA Head of International Communications James Nason had told PTI.
"We are fully aware of and we have no intention of having any roving enquiry," Mukherjee said, adding that it would pursue the matter on the basis of specific information to help the tax authorities nail the defaulters.
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Switzerland had last week 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.
Mukherjee said the government would use whatever information it gets from the Swiss authorities, but the "secrecy clause of Swiss banking, they have again reiterated that it will be maintained."
He said after India appealed to the Swiss authorities, it was suggested that New Delhi should enter into negotiations for the amendment of the avoidance of double taxation agreement.
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"It was agreed that we should follow the model code of the OECD in respect of taxations and exchange of information part, that we have agreed... we have (also) agreed to initiate for the amendment of the relevant clause on taxes where the exchange of information can take place," he said.
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