New Delhi: The Swiss Bank has finally exchanged the first tranche of financial accounts of its residents under a new automatic exchange of information framework between the two countries after India requested details on financial accounts of Indians.
The information was exchanged by the Switzerland’s Federal Tax Administration (FTA) under the AEOI framework said an FTA spokesperson, Indiatoday reports.
India had requested details on financial accounts that were currently active as well as those accounts that were closed during 2018 while the second exchange is likely to take place next year in the month of September.
The information exchanged is governed by strict confidentiality clauses and the FTA officials refused to disclose specific details on the number of accounts or the details on quantum of financial assets associated with these accounts of Indian clients.
The FTA has sent information on around 3.1 million financial accounts to the partner states while in exchange received information on around 2.4 million from them.
This information includes identification, account and financial information, details which include name, address, state of residence and tax identification number, as well as information concerning the financial institution, account balance and capital income.
The Government of Switzerland in a statement said the number of countries with which the AEOI (Automatic Exchange of Information) took place has risen to 75 this year, out of which it was reciprocal with 63 countries.
“The largest exchange was with Germany (in both directions), as was the case in the previous year. The FTA cannot provide any information on the amount of financial assets,” the statement said.
When asked about the details relating to India, the FTA spokesperson said, “The communication of statistical data is subject to the confidentiality clauses as well.”
He further added: “According to the international agreement in place, the exchanges have to take place within nine months after the end of the respective calendar year. This means the exchange takes place in September, except for corrections.”
“The exchanged information allows the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns,” the FTA said.