Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Ministry of Finance of Republic of India : Finance Ministry refutes news media reports of alleged black money held by Indians in Switzerland

06/19/2021 | 12:23am EDT
Ministry of Finance
Finance Ministry refutes news media reports of alleged black money held by Indians in Switzerland

Information sought from Swiss Authorities to verify increase/decrease of deposits
Posted On: 19 JUN 2021 9:32AM by PIB Delhi

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.

Media reports allude to the fact that the figures reported are official figures reported by banks to Swiss National Bank (SNB) and do not indicate the quantum of much debated alleged black money held by Indians in Switzerland. Further, these statistics do not include the money that Indians, NRIs or others might have in Swiss banks in the names of third-country entities.

However, the customer deposits have actually fallen from the end of 2019. The funds held through fiduciaries has also more than halved from end of 2019. The biggest increase is in 'Other amounts due from customers'. These are in form of bonds, securities and various other financial instruments.

It is pertinent to point out that India and Switzerland are signatories to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC) and both countries have also signed the Multilateral Competent Authority Agreement (MCAA) pursuant to which, the Automatic Exchange of Information (AEOI) is activated between the two countries for sharing of financial account information annually for calendar year 2018 onwards.

Exchanges of Financial Account information in respect of residents of each country have taken place between both countries in 2019 as well as 2020. In view of the existing legal arrangement for exchange of information of financial accounts (which has a significant deterrent effect on tax evasion through undisclosed assets abroad), there does not appear to be any significant possibility of the increase of deposits in the Swiss banks which is out of undeclared incomes of Indian residents.

Further, the following factors could potentially explain the increase in deposits:

  1. Increase in the deposits held by Indian companies in Switzerland owing to increased business transactions
  2. Increase in deposits owing to the business of Swiss Bank branches located in India
  3. Increase in Inter- bank transactions between Swiss and Indian Banks
  4. A capital increase for a subsidiary of a Swiss Company in India and
  5. Increase in the liabilities connected with the outstanding derivative financial instruments

The Swiss Authorities have been requested to provide the relevant facts along with their view on possible reasons for increase/decrease in the light of the media reports highlighted above.

****

RM/MV/KMN



(Release ID: 1728429)Visitor Counter : 1


Disclaimer

Ministry of Finance of the Republic of India published this content on 19 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 June 2021 04:22:01 UTC.


ę Publicnow 2021
Latest news "Economy & Forex"
05:10aTAIFEX TAIWAN FUTURES EXCHANGE : The Taiwan Futures Exchange will add new single stock futures on August 2nd, 2021.
PU
05:08aKumba Iron Ore hikes interim dividend after earnings jump
RE
05:08aSterling dips against dollar as stocks slide
RE
05:05aExplosion rocks chemicals site in western German city of Leverkusen
RE
05:05aFTSE Falls as Miners, Banks and Reckitt Drop
DJ
04:53aOil steadies as tight supply outweighs virus spread
RE
04:52aPrivate equity firms to scramble for exit after China's new tutoring rules
RE
04:43aAsian stocks hit 2021 lows on China tech selling, real yields drop before Fed
RE
04:40aCENTRAL BANK OF RUSSIAN FEDERATION : Results ofámonitoring ofácredit institutions' maximum interest rates
PU
04:37aChina Evergrande to cancel special dividend proposal
RE
Latest news "Economy & Forex"