New Delhi: Swiss Authority has submitted to the Ministry of Finance that the customer deposit held at Swiss Bank is not necessarily located in Switzerland and also includes deposits in their foreign branches, the State Minister for Finance Pankaj Chaudhary said on Tuesday.
In accordance with the latest data from the Swiss National Bank (SNB), funds parked by Indian individuals and companies at Swiss Bank, including through Indian-based branches and other financial institutions, surged to 13 years high of 2.55 billion Swiss francs (Over RS ​​20,700 Crore) In 2020.
In response to written questions at Rajya Sabha, Chaudhary said in connection with the recent media report, the recent Swiss authority, Inter-Alia, said that the SNB report provided a comprehensive picture of the Swiss banking sector and.
based on SNB annual banking statistics.
Last month, the Ministry of Finance has been seeking details of the Swiss authority for the relevant facts along with their views on possible reasons for changes in funds parked by individuals and Indian entities in 2020.
“For these statistics, the reporting bank provides balance sheet data on their balance Bank banks and in their foreign branches.
Furthermore, the Swiss authority has also said that the customer deposits held with Swiss banks are not necessarily located in Switzerland.
Thus, SNB annual banking statistics should not be used to analyze deposits held in Switzerland.
by Indian residents, “Chaudhary said.
Citing SNB data, PTI, on June 17, reported that funds parked by Indian individuals and companies in Swiss Bank, including through Indian-based branches and other financial institutions, surged to as high as 13 years 2.55 billion Swiss francs (more than RS 20,700 ) Crore) In 2020 with a sharp surge in ownership through securities and similar instruments, although the customer deposit fell.
Following the report, the Ministry of Finance in a statement said the Swiss authorities had been asked to provide relevant facts along with their reasons.
Automatic exchange of information in tax problems between Switzerland and India has been valid since 2018.
In this framework, detailed financial information about all Indian residents who have accounts with Swiss financial institutions since 2018 are provided for the first time for Indian tax authorities in September 2019 and this must be followed every year.
“India involves proactively with Switzerland to get information in relevant cases with a multiple tax avoidance agreement (DTAA) between India and Switzerland.” Furthermore, India and Switzerland are the signing of multilateral conventions on reciprocal administrative assistance in tax issues and the two countries have also signed a Multilateral Competitive Authority Agreement in accordance with automatic information exchange activated between the two countries to share financial account information with the General Reporting Standards (CRS) year, “said Chaudhary.
In accordance with aggregate data, the increase in Indian clients with Swiss banks from 899 million Swiss francs (Rs 6,625 Crore) at the end of 2019, reversing a trend to decrease two years and have taken numbers to 2.55 billion Swiss francs in 2020 .
While the funds were classified as’ customer account ‘deposits’ actually refused from CHF 550 million at the end of 2019 and they through fiduciary also more than that and halved from CHF 7.4 million, the money held through another bank rose sharply from CHF 88 million In this period.
In a written reply, Chaudhary said ‘Black Money (PE Ndate of Foreign Confidential and Asset) and the imposition of the Tax Law, 2015 ‘applied to the effect of July 1, 2015, to deal with specifically and more effectively with the problem of black money stored abroad.
In the last three financial years, 166 assessment orders passed, request RS 8,216 Crore increased and prosecution was launched in 104 cases based on the law.