adplus-dvertising
Stories

No Data On Money Deposited In Swiss Banks By Indians: FM Nirmala Sitharaman

No data on money deposited in Swiss banks by Indians: FM

Highlights

  • The minister stated this in a written response to a question in the Lok Sabha on Monday.
  • She claimed, however, that recent media reports indicated that the amount of money held by Indians in Swiss banks increased in 2021 as compared to 2020.
  • The minister claimed that the Swiss authorities had informed him that it was improper to analyze deposits held in Switzerland by Indian citizens using the Swiss National Bank’s (SNB) yearly banking statistics.

New Delhi: How much amount of money that Indian citizens and companies deposit in Swiss banks.

swiss bank

The federal government does not have access to this information. Actually, Finance Minister Nirmala Sitharaman acknowledged this in response to a question posed in the Lok Sabha on Monday.

In fact, Deepak Baij and Suresh Narayan Dhanorkar had questioned whether there had been an increase in the amount deposited by Indian people and businesses in Swiss banks in the Lok Sabha.

Finance Minister Nirmala Sitharaman responded by informing the Lok Sabha that the government had formed a multi-agency team (MAG) made up of representatives of enforcement agencies/organizations to carry out prompt and coordinated investigations into cases involving foreign assets, such as the Panama Papers leaks, the Paradise Papers leaks, and the recently discovered Pandora Papers leaks.

There is no official estimate of the amount of money that Indian residents and businesses have put in Swiss banks, according to Union Finance Minister Nirmala Sitharaman.

In response to a question in the Lok Sabha on Monday, the minister gave a written response.

When asked about the amount of money Indian residents and businesses had put in Swiss banks, she responded, “There is no official estimate of the amount of money.”

Assessment work of 368 cases completed

swiss bank

According to Sitharaman, as of May 31, 2022, the concealed income of more than 8,468 crores has so far been brought to tax and a fine of more than 1,294 crores has been imposed as a result of deposits made in unreported foreign bank accounts in the HSBC instances.

See also  Does Implying Taxes On Crypto Makes It Legal? Can Murder, Rapes & Drugs Also Be Made Legal If Citizen Pay Taxes On Them? Why Is Modi Led BJP Government So Money Minded?

Further, FM said that during the one-time three-month compliance window, which ended on September 30, 2015, 648 disclosures involving unreported foreign assets totaling 4,164 crores were made. In such situations, roughly $2,476 crore in tax and penalties were collected.

According to the Double Taxation Avoidance Agreement between India and Switzerland, India is proactive in its engagement with Switzerland to acquire information in pertinent cases, according to Sitharaman.

The Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the Multilateral Competent Authority Agreement were also signed by the two countries, allowing for an annual Automatic Exchange of Information for the sharing of financial account data under the Common Reporting Standard (CRS) between the two countries.

Money flows

She claimed, however, that recent media reports indicated that the amount of money held by Indians in Swiss banks increased in 2021 as compared to 2020.

These deposits do not represent the amount of the purported black money kept by Indians in Switzerland, according to the media sources.

The Swiss National Bank’s (SNB) data are widely quoted in Indian media as a reliable indicator of the value of assets held by Indian residents with Swiss financial institutions, according to a statement from the Swiss authorities that Sitharaman highlighted in reaction to these media claims. 

Inaccurate headlines and analyses have resulted from the media’s frequent reporting of numbers without regard for how they should be evaluated. Furthermore, it’s widely accepted that any assets held by Indian citizens in Switzerland are concealed (also known as “Black Money“).

Undisclosed foreign assets

swiss bank

According to her, the government has recently taken a number of “real and proactive efforts” to tax undeclared overseas assets and income.

See also  Israel says it reached deal with UAE to jointly fight virus

The Federal said that one of these is the passage of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which imposes harsh criminal penalties.

The minister informed the House that 29 Foreign Assets Investigation Units have been established nationwide under the Directors General of Income Tax (Investigation) for the proper implementation of the Act.

In order to facilitate the exchange of information, the government has also signed agreements with various jurisdictions that prevent double taxation, exchange tax information, and implement the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the SAARC Multilateral Agreement.

According to her, India has been actively interacting with other countries to exchange information in accordance with these tax treaties.

Agencies managing leaks

According to the minister, India and Switzerland are actively exchanging information in relevant cases in accordance with their double taxation avoidance agreement.

She continued, “These media sources have also noted that these deposits do not represent the magnitude of the allegedly black money held by Indians in Switzerland.”

“Inaccurate headlines”

The Swiss National Bank’s (SNB) statistics are frequently cited in Indian media as a trustworthy measure of the number of assets owned by Indian residents at Swiss financial institutions.

Inaccurate headlines and assessments have stemmed from the media publications’ failure to consider how the numbers should be read, according to Sitharaman.

The SNB annual banking statistics should not be utilized to analyze deposits held in Switzerland by Indian residents, according to the Swiss authorities, she claimed. Instead, locational banking statistics should be used, which are gathered by the SNB and the Bank for International Settlements (BIS).

According to the same media reports, Sitharaman stated that deposits made by Indian citizens in Swiss banks decreased by 8.3% in 2021 according to the locational banking statistics of the BIS.

Steps were taken by the government

swiss bank

She said that the government has recently taken several “real and proactive efforts” to tax undeclared foreign assets and income. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which lays out severe punishments, is one of these.

See also  RBI declares, Creation of Payments Infrastructure Development Fund to shoot-up the use of POS Machines in Small Cities & Towns

The minister informed the House that 29 Foreign Assets Investigation Units have been established nationwide under the Directors General of Income Tax (Investigation) for the proper implementation of the Act.

The government has also signed multilateral agreements with different jurisdictions that facilitate the exchange of information, such as the SAARC Multilateral Agreement, Multilateral Convention on Mutual Administrative Assistance in Tax Matters, Tax Information Exchange Agreements, and Double Taxation Avoidance Agreements.

According to her, India has been actively interacting with other countries in order to exchange information in accordance with these tax treaties.

In order to expedite and coordinate the investigation of various categories of foreign asset cases, such as the Panama Papers, Paradise Papers, and most recently, the Pandora Papers, the government has also established a Multi-Agency Group (MAG), which is made up of representatives from various enforcement agencies and organizations.

According to the minister, India and Switzerland are actively exchanging information in pertinent cases in accordance with their double taxation avoidance agreement.

According to Sitharaman, as of May 31, 2022, deposits made in unreported offshore bank accounts in HSBC cases had resulted in the taxation of over Rs 8,468 crore in unreported income and the collection of over Rs 1,294 crore in fines as a result of various government proceedings.

The tax demand has also increased to over Rs 14,820 crore as of May 31, 2022, thanks to assessments under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which have been completed in 368 cases.

edited and proofread by nikita sharma

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
%d bloggers like this:

Adblock Detected

Please consider supporting us by disabling your ad blocker