Daijiworld Media Network – Geneva (SP)

Geneva, Jun 18: The nod given to the proposed amendments to the double taxation agreements to fall in line with international standards, by the upper house of the Swiss parliament on Friday June 17, is expected to make it easier for countries to get access to funds stashed away by their citizens in Switzerland, touted to be a tax haven.

With these ammendments to tax treaties with countries getting the approval of the Swiss parliament, several countries including India may find it easier to get information about the illegally gotten wealth that is kept in Swiss banks by people, to avoid legal problems and tax liability at home. The ammendment facilitates countries that have signed double-taxation agreements with Switzerland, to get easy legal assistance, information, as well as to identify the people holding accounts in that bank, by furnishing an IBAN or social security number.

Countries like India, Germany, Canada, Japan, Netherlands, Poland, Kazakhstan, Uruguay, Turkey and Greece are likely to benefit from the said ammendments. These ammendments have come at a crucial juncture for India, where the government is facing heat from the Supreme Court as well as the general public to bring back country’s money illegally swindled and kept in Swiss banks by individuals and organizations.

The protocol to ammend the double taxation agreement was signed on August 30, 2010, by finance minister, Pranab Mokherjee, and Swiss federal councillor, Micheline Calmy-Rey.

However, legal experts have cautioned that there is a provision to challenge the ammendments now  passed, relating to the Swiss Banking Secrecy Laws, within the next 100 days. India’s revised tax treaty had received the approval of a panel of the Swiss parliament in January this year. As per this agreement, India will be entitled to seek and get information on secret bank accounts of its citizens in the banks of that country, with effect from January 2011.