India sends third letter to Switzerland asking about sharing information on tax evaders

NEW DELHI: India has stepped up pressure on Switzerland to share information on tax evaders whose names figured in the so-called HSBC list — a record of account holders’ names that became available to tax authorities worldwide, including India, after data was stolen by a disgruntled employee in 2011.

Finance minister P Chidambaram has shot off another letter— the third in four months— to his Swiss counterpart to expedite the matter. The letter takes its cue from a new Swiss law that allows the country to share information more effectively sans prior notification to persons holding bank accounts there. “We are hopeful of some forward movement on information sharing with the passage of this law," a finance ministry official told ET.

Swiss finance minister Eveline Widmer-Schlumpf, in her response to Chidambaram’s earlier letter, had highlighted the change in law that could come into effect from July and the country’s efforts on information sharing. Tax authorities in India are keen to get information on taxpayers whose names figure in the HSBC list. The list includes details of account holders in the bank’s branch in Geneva that was shared with India by French tax authorities. French authorities had obtained the list from an employee of the bank.

Switzerland has, so far, declined to share details about those who figure on the list citing a domestic law that bars it from sharing information if data was not procured officially. Indian tax authorities have argued that they received information through a proper official channel. In his latest letter sent this week, Chidambaram has pressed Swiss authorities for cooperation in this matter.

"It’s a long reply and the minister has defended the Swiss position in some matter. The minister has made conciliatory statement in one of the matters. The reply is being studied very carefully and we will send further letter in the next few days" the finance minister had said last week.

Switzerland’s banking secrecy and parking of funds by Indians has been highlighted repeatedly by the Opposition. The Supreme Court ruling directing the government to disclose information received from Germany about individuals stashing money in Liechtenstein Bank has brought the issue under the spotlight. The government has given the court details of 18 tax evaders against whom prosecution was launched on Tuesday.

India has toughened its stance on information sharing under bilateral treaties. It entered into a new treaty with Switzerland that came into effect from November 2011. The finance minister had warned that non-cooperation by Swiss authorities on the matter would be taken up on global fora and the G20. New Delhi has already blacklisted Cyprus for not cooperating in sharing information. All remittances to Cyprus now attract a higher 30 per cent withholding tax.