Switzerland has ratified automatic exchange of financial account information with India. It will facilitate immediate sharing of details about suspected unaccounted money.
Switzerland has done this adopting the dispatch on introduction of the AEOI, a global convention for Automatic Information Exchange on Tax Matters.
This decision follows hectic diplomatic efforts between India and Switzerland for introduction of the AEOI (Automatic Exchange of Information) on tax matters under the guidance of G20, OECD and other global organisations.
The implementation is planned for 2018 and the first set of data should be exchanged in 2019.
The decision is not subject to any referendum —which means there should be no further procedural delay in its implementation.
The issue of unaccounted money has been a matter of big debate in India and Switzerland has been long perceived as one of the safest havens for the illicit wealth allegedly stashed abroad by Indians.
Automatic exchange of information will prevent tax-evasion in India. It will also enable tracking the illicit trans-boundary flow of money.