Indian agencies get Swiss banks’ data of hoarders :Black money
Tax Investigators finally find a way to get the Swiss secrecy code by asking over 100 such account holders to submit on their own details of personal balances in these banks as a result of pursing instances of black money stashed abroad. According to the source in these cases the tax effect could be about Rs. 50-80 crore.
The Finance Ministry’s probe wing under the Central Board of Direct Taxes, faced by non-cooperation from Switzerland owing to the alpine nation’s domestic legal barriers and treaty limitations confronted the people who were named in the secret list of at least two Swiss banks that was provided to them through both official and unofficial channels during the last financial year , the sources said.
The CBDT asked to income tax department investigators, if these bank holders approach their banks for details of their personal balances and submit them to Indian agencies, then pursue these suspect account holders with the bargain that they would be charged under tax evasion laws and not under the wilful tax evaders category, thereby saving them from harsher penal action.
The particular report in these cases submitted to the Supreme Court on black money was also shared by the agencies with the special investigation team (SIT). The prosecution action in these over 100 cases and they will be charged for evasion of taxes on this hidden income has begun by the Income Tax Department.
The source said that the information was readily available when the account holder was himself or herself motivated to approach the bank to obtain his transaction history and balances, bank authorities in Switzerland did not extend help when the names of these account holders were sent to them under existing protocols of tax information exchange treaties.
The details about the Indians named in the so called ‘HBSC list’, the Swiss government has been refuse to share then it was stolen by an employee and later found its way to tax authorities in various countries, including India.
Switzerland was signed treaties with 36 countries including India to provide administrative assistance in tax matters in accordance with international protocols as mandated by the Paris-based global economic body ( the organization for Economic cooperation and development).