‘Switzerland not sharing info on accounts of Indians’

India is pressing for immediate redressal of the Swiss data because investigation in some of the cases would statutorily become time-barred on March 31 if the relevant information does not arrive by then.

Facing flak for delay in bringing back black money stashed abroad, finance minister P Chidambaram has warned Switzerland that India would drag it to global platforms such as the G-20 if it does not cooperate to India’s requests for information sharing.

India had sought information on some HSBC accounts, on the basis of data obtained from the French government. However, the Swiss authorities, in a letter dated February 20, have said they were closing the request made by India in 562 cases. Switzerland has so far refused to share the information on the grounds that the source of information requested is based on stolen data. “The Government of India is seriously concerned that some Indian taxpayers may have parked substantial unaccounted income and assets in offshore jurisdictions, and it expects cooperation from those jurisdictions to deal with them effectively,” noted Chidambaram in a reply to the Swiss letter.

Chidambaram’s reply, dated March 14, addressed to Swiss finance minister Eveline Widmer Schlumpf was released to media on Thursday after the Supreme Court, a day earlier, pulled up the government for its “inaction” in bringing back black money stashed in foreign bank accounts.

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India is pressing for immediate redressal of the Swiss data because investigation in some of the cases would statutorily become time-barred on March 31 if the relevant information does not arrive by then.

In the two page letter Chidambaram has threatened that India might examine further steps like declaring Switzerland a non-cooperative jurisdiction if it continues to block its requests.

“Switzerland’s refusal to provide information to India and other countries on the grounds that the source of the information requested is based on ‘stolen data’ means that, in practice, Switzerland still believes in bank secrecy and is therefore not in tune with the modern era,” he said.

India can designate Switzerland as a notified jurisdictional area under section 94 A of the Income Tax Act, 1961, for the denial of request for information on Indians who have parked alleged illegal money in foreign accounts.

Will soon respond, says Swiss govt

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New Delhi: Switzerland has said it would soon respond to the letter that has raised concerns about not providing information on alleged unaccounted money.

“We confirm that we have received a letter from India’s finance minister. He will receive an answer soon,” a Swiss government spokesperson said. PTI