CA Neha Bhuwania

CA Neha BhuwaniaMay 6’ 2014 was a day which should create fear of the worst by the Indian Nationals who have shrouded their black money at the Swiss. It was at this day when Switzerland has signed for mutual cooperation in tax matters at the convention.

Our finance minister Mr P Chidambaram has been continuously pressing the Swiss authorities at Switzerland for assistant in tax probe matters. This request is followed by the adoption of the global declaration for automatic exchange of tax information under the aegis of OECD [Organisation for Economic Cooperation and Development].

It has been a well noted fact that most of the Indian big shots have concealed their “undeclared” income in the Swiss accounts as there was no mutual cooperation agreement between the two countries for mutual exchange of tax related information.

As of now, in spite of repeated reminders and requests, no ratification has been done by the Swiss Authorities. The controversy remains the same. Can a top shot Indian National be pardoned from paying genuine taxes and declaring his “other” sources of income, just because he holds an account at the Swiss? The bank has been well known for its top secrecy rules about the clients who hold accounts with them along with the holding details. The big question is- Does signing this declaration by them actually brings the nationals holding accounts there under the lime light or the trend of export of money from India shall continue on account no such ratification till date?

With the power of RTI as well, the common Indian still does not have sufficient measures to know where does the public money paid as taxes (Both direct and indirect taxes) goes. How much of it is behind the veil of these foreign bank accounts with no traces?

As per The Hindu, a leading newspaper, the details released by the Swiss National Bank (which is the central bank of Switzerland) says that the funds held by the Indians in the Swiss Banks have risen by 370 million Swiss Francs which is close to Rs. 11,800 crores in the year 2011. Due to the high secrecy levels maintained by the bank, not much information about the holders of such large chunk has been made public. However, the increase in holdings is growing exponentially year on year.

The value of Rupee has been diminishing at the International level on one hand and on the other, crores of Rupees have been swiped off from the country by so called Indian nationals. This has no direct link with patriotism, it is just about paying what you are due to pay.

Just by opening a bank account abroad, any Indian doesn’t get a right to escape the tax liabilities in the home country. With the Modi government in force, hope this prolonged controversy shall end and there shall be a more transparent structure with tax liabilities for the nationals with the common public having a right to know where the public money has been utilized and does proprietary audit actually help.

(Author is Co-founder & Managing Director of FxMantra and can be reached at nehabhuwania18 @ gmail.com )

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0 responses to “The prolonged controversy on Swiss Bank Accounts”

  1. Deepak Gurnani says:

    We should hope the new modi govt. to bring back our rupee dumped in the swiss bank and use it for the benefit of country nd control the growing inflation

  2. Anirudha Bhat says:

    It is understood that the Treaty with Switzerland is only prospective nature and that will not cover old SWISS ACCOUNTS. Subramanya Swami had mentioned that if the part of SWISS monies are brought in, there is no need to tax Indians for atleast for one year and it would be tax-free budget.

  3. Neha says:

    Mr. Subodh..The above is purely my personal opinion. Secondly, black money is quite a simple term. Anything which is either illegal or legal income but not declared by the assessee.. Since money exiats then only funding is done by fake bills right? If money itself doesnt exist how can we talk of funding it?

    My idea is not to suggest a tax reform but to pin point on the corruption level in India due to which such a possibility of taking money out of India exists which needs to be looked into.

    Mr. Kulkarni, if the money is brought back to INDIA tax free, then I think all the richest Indians will go and deposit it there, do tax evation and then shall legally bring it back as “tax free” income! Then why talk about tax evasion in the first place?

  4. VN KULKARNI says:

    DECLARE SOME SHEME UNDER WHICH THE BLACK MONEY PARKED IN SWIISS BANK CAN BE BROUGHT IN INDIA TAX FREE BUT INCLUDE IT IN THE INCOME OF THE OWNER.

  5. Subodh says:

    in india all political system needs huge money ,and there is no legal way to fund it,so the amount is diverted out of the govt expenditure by booking fake bills,govt pay by cheque than cash is drawn from bank and distributed among beneficiary viz political leader, buerucarate,contractor.
    please first define black money and than only you can attack it.
    merely tax reform will not help,

  6. Neha says:

    Yes Mr. Deshmukh, you are right about Arthkranti..However, system doesnt rule anybody..It is corrupt and we need to find a way to live as we too in some way are part of the system..Legistation has at least provided right to speak and right to vote.. Lets see whats in store for us..

  7. A M DESHMUKH says:

    Arthkranti is the only solution for this

    unless people like you insist on this fact, the corrupt system is going to rule people like you and me

    choice is yours……..

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