Tag: Swiss bank Indians

Government of India, whether it is The Congress or the BJP have been saying that the information from the Swiss Banks can not be declared as it has to be kept to secret as per the Treaty with the Government of Switzerland on Double taxation.

I decided to have a look at the Treaty between India and Swiss Confederation.

I am providing the link to the Agreement text.

Here I quote the relevant clauses on the sharing of the information, obtained from Swiss authorities on Black money stashed in the Swiss Banks.

Notification G.S.R. NO. 357(E),dtd. 21.4.1995.

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of this Agreement in relation to the taxes which are the subject of this Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of this Agreement. No information as aforesaid shall be exchanged which would disclose any trade, business, industrial or professional secret or trade process.
2. In no case shall the provisions of this Article be construed as imposing upon either of the Contracting States the obligation to carry out administrative measures at variance with the regulations and practice of either Contracting State or which would be contrary to its sovereignty, security or public policy or to supply particulars which are not procurable under its own legislation or that of the State making application.”

Clause 1 states that the information ,

shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of this Agreement.”

Also this information , will not be divulged.

‘which would disclose any trade, business, industrial or professional secret or trade process.’

In divulging the names to the Parliament or the public there is no disclosure of any trade secrets excepting the illegal gratification received and one will be divulging the names and details of accounts which are prima facie illegal, based on the Letter Regotary had been submitted.

That letter is issued only if there is prima facie case.

Hence it is a lie to say that the Government can not disclose the information and it has to be secret.

Now the clincher of a Clause in the Agreement is the Clause number 2  quoted here.

“In no case shall the provisions of this Article be construed as imposing upon either of the Contracting States the obligation to carry out administrative measures at variance with the regulations and practice of either Contracting State or which would be contrary to its sovereignty, security or public policy or to supply particulars which are not procurable under its own legislation or that of the State making application.”

Money laundering is contrary ‘sovereignty, security or public policy or to supply particulars which are not procurable under its own legislation or that of the State making application.”.

The Governments, whether the Congress or BJP has been lying about the Agreement with the Swiss is preventing them from divulging this information

Double Tax Agreement between India and Swiss Federation.

UK has a double taxation treaty similar to the one entered into by India with the Swiss Government.

According to UK, the following people will be affected.

”

Any UK individual with a bank account, trust or company in Switzerland will be affected by the agreement. Swiss banks will be checking their records to identify such individuals. If banks do not have current information about their customers, account-holders may be contacted when they do not meet the relevant criteria. They should contact the bank to avoid suffering the one-off levy, as outlined above.

Money from a wide range of sources is held in Switzerland, much of it for decades. Examples include:

• People who have worked abroad and opened Swiss bank accounts to hold their earnings, and failing to declare the account on their return to the UK. Typical examples include those working in the oil and gas sectors, and money earned from international trade;
• Inter-generational. A lot of “old” money has been held in Switzerland for two or three generations. This was the hardest for HMRC to “unlock”;
• Money moved to Switzerland in the past to avoid exchange controls or international sanctions, particularly those applying to former UK colonies such as Rhodesia. This money could not be declared to HMRC because that would involve divulging the source;
• Money hidden in Swiss bank accounts to avoid detection by a spouse, with a subsequent divorce. Spouses hiding their assets in this way may have perjured themselves during the divorce proceedings, and legal advice should be taken.

Note the point italicized.That would tell you the story.

http://www.advocatekhoj.com/library/agreements/doubletaxation/63.php

http://www.out-law.com/topics/tax/tax-litigation–disputes-/the-ukswiss-agreement-over-taxation-of-undeclared-swiss-bank-accounts/

That is this information can be passed onto the Income tax department.

.

.

Related articles

https://ramanisblog.in/2011/02/22/rajiv-2-5-billionsswiss-magazine-confirms/

• Unauthorised disclosure of black money accounts will affect probe: Arun Jaitley
• Sonia Gandhi Named In Corruption In Italian Court