In the latest installment of the annual automatic information exchange between India and Switzerland, India has received crucial Swiss bank account details belonging to its nationals and organizations. This marks the fifth consecutive year of information exchange between the two nations, aimed at enhancing transparency and aiding investigations into financial matters.
The recently shared details encompass “hundreds of financial accounts,” including numerous instances of multiple accounts associated with individuals, corporations, and trusts. The information includes identification data, account specifics, financial information such as name, address, country of residence, and tax identification numbers, as well as details about the reporting financial institution, account balances, and capital income.
Indian officials have refrained from disclosing the specific financial amounts associated with the shared data or providing further specifics. This discretion is rooted in the confidentiality clause governing the information exchange and the potential adverse impact on ongoing investigations. However, authorities emphasize that the data will play a vital role in addressing suspected tax evasion, money laundering, and the funding of terrorist activities.
The exchange occurred last month, and Switzerland is scheduled to share the next set of information with India in September 2024. This shared data empowers tax authorities to verify whether taxpayers have accurately reported their foreign financial accounts in their tax returns.
The Federal Tax Administration (FTA) of Switzerland announced that it had exchanged financial account information with 104 countries under the global standard for Automatic Exchange Of Information (AEOI). This year, Kazakhstan, the Maldives, and Oman were added to the list of participating countries, increasing the count of financial accounts exchanged by nearly two lakh.
While the exchange of information was reciprocal with 78 countries, Switzerland received data from 25 countries but did not provide any in return. This divergence occurred either because some countries did not meet international requirements on confidentiality and data security (13) or chose not to receive data (12).
The exchanged information allows Swiss cantonal tax authorities to verify whether taxpayers have correctly reported their foreign financial accounts in their tax returns. India has consistently been among the prominent recipients of this information exchange for the past five years.
The data shared with Indian authorities pertains to a significant number of individuals and organizations holding accounts in Swiss financial institutions. The information received has proven valuable in building robust prosecution cases against those with undisclosed wealth, as it provides comprehensive details of deposits, transfers, and earnings.
This initiative reinforces Switzerland’s commitment to global financial transparency and counters the perception of its banking system as a safe haven for illicit funds. Additionally, Switzerland has agreed to share details about real estate assets owned by foreigners, further aiding India’s efforts to combat offshore black money.
While significant strides have been made in financial transparency through the AEOI framework, some areas, such as contributions to non-profit organizations and investments in digital currencies, remain beyond its scope. Switzerland’s dedication to this initiative bolsters its positioning as a global financial center and preferred investment destination, including for real estate properties.
Sources By Agencies
