'Cabinet nod for revised Swiss tax treaty soon'
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The government is likely to approve the revised tax treaty with Switzerland soon, a move that will speed up government efforts to seek information about illicit wealth stashed away by Indians in Swiss banks.
"The Cabinet is likely to give nod to revised Double Taxation Avoidance Agreement (DTAA) with Switzerland soon", a finance ministry official told PTI.
India has completed negotiations with Switzerland, Bermuda and the Bahamas on amending the bilateral taxation agreements that would help in seeking information about funds parked by Indian citizens in these countries.
Currently, India has DTAAs with as many as 79 countries but all of them do not have provision for exchange of information related to taxation.
The government has written to about 65 countries seeking to amend existing DTAAs, with the objective of inserting Article 26 of OECD's Model Tax Convention. This particular clause will allow exchange of tax-related information between two countries.
Paris-based Organisation for Economic Cooperation and Development sets the international tax standards.
The banking secrecy practices in Switzerland has been a political issue in many countries especially India, as many Indians are alleged to have stashed away billions of dollars worth unaccounted wealth in Swiss banks.
Earlier the Swiss Bankers' Association had made it clear that any country seeking secret account details must be specific with names of the individual and the bank involved.