Officials told news agency PTI that the third set of Swiss bank accounts of Indians would be disclosed this month under the automatic exchange of information agreement with Switzerland. This is the first time that the data will include details of real estate properties owned by Indians there. This can be seen as an important milestone in the Government of India’s fight against black money purportedly stashed abroad. According to officials, India will get complete information about flats, apartments and condominiums owned by Indians in Switzerland as well as income from such properties, which will help them to see the tax liabilities associated with those properties.
What does it mean
- India receiving the third set of Swiss bank account details assumes significance from Switzerland as well as the European Alpine nation, dispelling longstanding assumptions about the Swiss banking system and establishing itself as a major global financial centre. Working hard to do. Alleged safe haven of black money.
- Even though this is the third time that India will get details about bank accounts and other financial assets held by Indians in Switzerland, it will be the first time that the information being shared with India includes information about immovable property assets. Will be
- However, there is something that is still outside the limits of the automatic exchange of information framework. It includes information on contributions to non-profit organizations and other such foundations, as well as details on investing in digital currencies.
- According to experts, the move will help dispel misconceptions about illegality of all funds in Swiss assets and will go a long way in establishing Switzerland as a preferred investment destination, including real estate properties.
- From this year, the Federal Council of Switzerland, the country’s top governing body, has decided to implement a key recommendation of the Global Forum on Transparency and the Exchange of Information for Tax Purposes, under which Swiss officials conduct transactions conducted by foreigners. Will also share details about investment. Swiss real estate sector. However, some other recommendations of the Global Forum, including the sharing of information on digital currency accounts and contributions made to foundations and non-profit organizations, have not yet been accepted and therefore those details are not shared by Switzerland in India or any other country. will not be shared with for now. Hectic lobbying is underway globally to persuade Switzerland to start sharing information about contributions made to digital currency accounts and nonprofits.
- In each of the past two years, Switzerland has shared details of nearly three million financial accounts with various jurisdictions, while this year the count is expected to be higher. For the past two years, India has been one of the major countries with which Switzerland has shared details about the financial accounts of clients of Swiss banks and various other financial institutions, while this year with respect to the details of real estate properties Higher figures are also expected. .
- India had received the first set of details from Switzerland under AEOI (Automatic Exchange of Information) in September 2019. It was among 75 countries that received such information that year. In September 2020, India, along with 85 other recipient countries, received the second set of Swiss bank account details of its citizens and entities, with which the Federal Tax Administration (FTA) of Switzerland last year issued financial statements within the framework of global standards on AEOI. Exchange of information on accounts. .
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