The Finance Ministry on Saturday refuted claims that funds of Indians in Swiss Banks have risen to over Rs 20,700 crore in 2020, the best determine of deposits within the final 13 years.
“Certain reports have appeared in the media on 18.06.2021 stating that funds of Indians in Swiss Banks have risen to over Rs 20,700 crore (CHF 2.55 billion) at the end of 2020 from Rs 6,625 crore (CHF 899 million) at the end of 2019, reversing a 2-year declining trend. It has also been stated that this is also the highest figure of deposits in the last 13 years,” the ministry mentioned.
The ministry mentioned that the media reviews allude to the truth that the figures reported are official figures reported by banks to the Swiss National Bank (SNB) and don’t point out the quantum of much-debated alleged black cash held by Indians in Switzerland.
Further, these statistics don’t embrace the cash that Indians, NRIs or others might need in Swiss banks within the names of third-country entities.
However, the client deposits have truly fallen from the tip of 2019. The funds held by way of fiduciaries have additionally greater than halved from the tip of 2019. The greatest enhance is in “Other amounts due from customers”. These are in type of bonds, securities and varied different monetary devices.
It is pertinent to level out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and each international locations have additionally signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the 2 international locations for sharing of monetary account data yearly for the calendar yr 2018 onwards.
Exchanges of Financial Account data in respect of residents of every nation have taken place between each international locations in 2019 in addition to 2020.
In view of the prevailing authorized association for the alternate of data of monetary accounts (which has a major deterrent impact on tax evasion by way of undisclosed belongings overseas), there doesn’t look like any important chance of the rise of deposits within the Swiss banks which is out of undeclared incomes of Indian residents.
The Finance Ministry has additionally sought the related info from Swiss Authorities together with their view on potential causes for the rise/lower in funds.
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