New Delhi: The Finance Ministry On Saturday Said That India And Switzerland Share Information About The Financial Accounts Of Citizens Every Year And There Is No Significant Increase In The Flow Of Black Money Into Swiss Banks.
The Ministry Said Any Increase In Deposits In Swiss Banks By Indians Could Be Due To Increase In Business Transactions And Increase In Deposits By Indian Companies In Switzerland Due To The Business Of Swiss Bank Branches Located In India. An Increase In Interbank Transactions Between Swiss And Indian Banks, A Capital Increase For A Subsidiary Of A Swiss Company In India And Increased Liabilities Associated With Outstanding Derivative Financial Instruments Could Also Be The Reason For The Increase In Deposits.
India And Switzerland Exchange Information About Financial Accounts In Each Country Held By People Of The Other Country Since 2018. In A Statement, The Ministry Said, “Given The Existing Legal Regime For The Exchange Of Financial Account Information (Which Has A Significant Deterrent Effect On Tax Evasion Through Undeclared Assets Abroad), Deposits In Swiss Banks Have Increased. There Does Not Appear To Be Any Significant Potential For The Exclusion Of Undisclosed Income Of Indian Residents.”
The Ministry’s Clarification Is That Mere Increase In The Holding Of Financial Assets In Swiss Banks Is Not Sufficient To Interpret It As Flow Of Tax Evaded Money From India To Swiss Banks. The Clarification Comes After The Media Cited Annual Figures From Switzerland’s Central Bank And Reported That Funds Deposited By Indian Individuals And Firms In Swiss Banks, Through Branches And Other Financial Institutions In India, Amounted To 2.55 Billion Swiss Francs In 2020. Or Exceeds ₹ 20,700 Crore.
The Ministry Said The Swiss Authorities Have Been Requested To Provide Relevant Facts Along With Their Views On Possible Reasons For The Increase Or Decrease In Assets In View Of Media Reports.
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