Govt will talk to Swiss banks on disclosing details: Pranab

NEW DELHI: Finance
minister Pranab Mukherjee on Monday said the government will look into the matter of the rejection by Swiss banks to hand over
details of their Indian clients.

Speaking to newsmen before entering his North Block office Mukherjee said, "What can I comment? I will look into the matter and discuss the Swiss banks’ rejection to disclose details with authorities in banking
sector."

This reaction from the finance minister comes after Swiss banks declined India's request to unearth its black money parked in their banks. India has also been told not to come on 'fishing expeditions'.

Swiss bank authorities rejected India's request to disclose details of clients, saying Swiss law and the Organisation for Economic Co-operation and Development (OECD) Model Tax Convention do not permit fishing expeditions.

The Swiss authorities added that they would not co-operate in the indiscriminate trawling through bank accounts in the hope of finding something interesting.

"This means that India cannot simply throw its telephone book at Switzerland and ask if any of these people have a bank account here," a top Swiss bankers’ association official said.

According to sources the Swiss bank-client confidentiality has never been 100 percent absolute and Swiss legislators have built in provisions for it to be lifted during criminal investigations and also in many civil cases and it has also evolved over time.

"The key for the exchange of information in tax matters is the Double Taxation Agreement between Switzerland and India," said SBA's Head of International Communications James Nason.

Double Taxation Agreements are being currently revised to incorporate the OECD standard on the exchange of information in tax matters according to the OECD's own Model Tax Convention.