Swiss govt to amend tax laws to curb black money; talks in Dec
In a significant move that can bring back black money stashed away in Swiss banks, India and Switzerland will negotiate to amend the double taxation treaty in order to bring in safeguards to prevent its misue. The talks will kick off by the year end.india Updated: Oct 14, 2009 21:19 IST
Negotiations between India and Switzerland to amend the double taxation treaty to bring in safeguards to prevent its misue will kick off by the year end.
"We will amend the Double Taxation (Avoidance) Treaty to include tax evasion to prevent misuse," Phillippe Welti, the Swiss Ambassador to India, told a news channel here today.
When asked about revising the treaty with India, Welti said, "that is what the two governments have agreed, to have negotiations before the end of the year."
The abuse of the tax treaty leads to huge evasion and because of that the governments have to revise the treaties, he said.
"Now, it remains a matter for the governments to renegotiate and conclude. We are not just giving away anything. We have discussions and negotiations and agreements.
We sign the agreement, then it is ratified, then the new one adapted. It is a process," he said.
The ambassador's comments follow Finance Minister Pranab Mukherjee's statements in August that India would begin talks with Switzerland in December over amending the double taxation avoidance agreement and was not interested in a "roving inquiry" over unaccounted money stashed in Swiss banks.
The Finance Minister had pointed out earlier that the country had agreed to follow the model code of the OECD (Organisation for Economic Co-operation and Development) in respect of taxations and exchange of information.