Switzerland has failed to share information, says Chidambaram
- Outgoing Finance Minister P. Chidambaram threatened action against Switzerland at G20 forum for its persistent denial to share information about Indians who have stashed money in Swiss banks. The G20 can impose sanctions for the protection of the member countries’ public finances and financial systems.
- The G20 leader’s in April 2009 declaration mention that the era of bank secracy is over, despite that Swiss has blocked India’s requests for information.
- Switzerland’s refused to provide information to G20 stating that the information requested is based on ‘stolen data’ which implied that Switzerland believes in bank secrecy and is not in tune with the modern era.
- Indian tax authorities have sought information on Indian Swiss banks accounts under the Double Taxation Avoidance Agreement(DTAA) which is dishonoured by Switzerland.
- India has the option of making benefits unavailable to Swiss investors under the DTAA between them. India even warned of action under its domestic laws.
- The information is continuously denied to India under the DTAC (Double Taxation Avoidance Convention), Indian Government will be forced to take a position in global forum.
- There was no progress made during a bilateral discussion held in New Delhi on Feb 2014 as the Swiss delegation reiterated their previously stated positions refusing to consider alternate approaches.
- Mr. Chidambaram hopes that the Swiss government will persuade its Parliament to agree with domestic law changes to comply with internationally accepted standards and conventions.
- Switzerland cannot violate its obligations under the DTAC with India on any ground, including moralistic grounds on request of information.
- Double Taxation Avoidance Convention (DTAC)
- Double Taxation Avoidance Agreement (DTAA)
- Black money
- Parallel Economy