First set of data in 2019
- ? Switzerland has been long perceived as one of the safest havens for the illicit wealth allegedly stashed abroad by Indians
- ? The exchange of information will be carried out based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information.
- The Swiss Federal Council said the implementation is planned for 2018 and the first set of data should be exchanged in 2019
BERNE/NEW DELHI (TIP): Switzerland today ratified automatic exchange of financial account information with India and 40 other jurisdictions to facilitate immediate sharing of details about suspected black money even as it sought strict adherence to confidentiality and data security.
As per the draft notification approved by the council in its meeting today, the decision is not subject to any referendum — which means there should be no further procedural delay in its implementation.
Today’s decision follows hectic parleys between India and Switzerland for introduction of the AEOI (Automatic Exchange of Information) on tax matters under the guidance of G20, OECD and other global organisations.
The council said the proposal to introduce AEOI with India and others “met with widespread approval from the interested parties who voiced their opinions in the consultations”.
“In concrete terms, the AEOI will be activated with each individual state or territory by means of a specific federal decree within the framework of this dispatch,” it added.
The council said it will prepare a situation report before the first exchange of data, which is planned for autumn 2019. “In the process, it will be checked whether the states and territories concerned effectively meet the requirements under the standard, especially those concerning confidentiality and data security.
“It is important for the Federal Council that a level playing field be created among states and that all major financial centres, in particular, be included. This year, Switzerland has introduced the AEOI with 38 states and territories, including all EU member states, and data will start to be exchanged with them in 2018,” it added. Switzerland is satisfied with various regulations in India, including changes in the Information Technology Act, with respect to ensuring protection of privacy, according to a document released by the Swiss government.
Source: PTI