Switzerland shares third set of Swiss bank accounts' details with Indian authorities

Switzerland has provided the Indian authorities with the third set of Swiss bank accounts information of Indian nationals. This was done as part of a yearly process in which the European country shared information of roughly 33 lakh financial accounts with 96 countries. Officials revealed the information is mainly about business people, including NRIs who have settled in numerous Southeast Asian countries, as well as the United States, the United Kingdom, and even several African and South American countries, on the condition of anonymity. The Indian authorities were given information on many individuals and businesses having accounts in Swiss financial institutions. The Automatic Exchange Of Information (AEOI) data received by India has been instrumental in establishing a strong prosecution case against those with any unaccounted wealth, as it contains complete details of all deposits and transfers, as well as all earnings, including those earned through investments in securities and other assets, according to the experts.

The communicated information is used by tax authorities to evaluate whether taxpayers have represented their financial accounts appropriately on their tax filings. Identification, account, and financial information, such as name, address, country of residence, and tax identification number, as well as information on the reporting financial institution, account balance, and capital income, are among the details transferred.

Switzerland hopes to recast itself as a global financial centre

While information about contributions to non-profit organisations and other similar foundations, as well as details on digital currency investments, remain outside the scope of the AEOI framework, Switzerland has agreed to share information about foreigners' real estate holdings for the first time this year. Antigua and Barbuda, Azerbaijan, Dominica, Ghana, Lebanon, Macau, Pakistan, Qatar, Samoa, and Vanuatu were among the ten countries engaging in the information exchange this year, according to the Swiss Federal Tax Administration (FTA).

The exchange took place last month, and Switzerland will provide the next piece of data in September 2022. With this, Switzerland hopes to recast itself as a major global financial centre while refuting the long-held belief that the Swiss banking system serves as a safe haven for vast quantities of illicit funds.

(With inputs from agencies)

Image: Shutterstock