Mumbai: As India continues its pursuit of black money allegedly stashed abroad, Switzerland has said it would not entertain any ‘fishing expedition’ and authorities cannot ask for names of all Indian account holders in Swiss banks without doing their own independent investigations. Switzerland’s ambassador to India Linus von Castelmur also said the past cannot be undone, while promising full support of his country in cases where at least some proof is provided on tax frauds.
He, however, agreed that all the money deposited in Swiss banks might not have always been ‘taxed money’ in the past, as Switzerland was a major destination for several decades when money would flow in from different sources. The ambassador said cooperation by Swiss authorities cannot take place on the basis of stolen lists of account holders and would need independent probes by Indian agencies and at least a prima facie proof of tax frauds.
“We understand and appreciate India’s concerns on the matter. We need clear understanding on the issue,” he said. “I think one part of the issue is dealing with the past and Switzerland was destination for several decades where money flowed in from difference sources and that was not always a tax money,” he said. “When we look from present and future, we see that problem will be solved,” said Mr Castelmur, who was here for an award function where industrialist Azim Premji was given a Swiss honour for inspirational and socially responsible leadership.
“We have excellent contact with Indian government. You cannot un-do the past, but future is bright,” he said. “In future cases of the money deposited by Indi-ans, Germans or Americans in Swiss banks, the swiss banking and taxation authorities would inform the national tax authorities of the client country and there will be transparency,” he said. Dealing with the past, however, is difficult, he said, while adding that whatever has happened over the last 50 years or so “cannot be undone”. “So, I think Switzerland extends full cooperation to the Indian government on the basis of bilateral agreement we have.
We have double taxation avoidance agreement with India and that stipulates administrative legal assistance for tax evasion cases,” he added. The treaty, however, stipulates a condition that “we cannot work with so-called fishing expedition and you cannot say I would like to have all the names of Indian account holders in Switzerland. That is not possible,” he added.
“We have also decided that we cannot work with stolen data. We can only work when there is true investigation by the Indian tax authority, where they have clear prima facie evidence, that there has been a tax fraud involved,” the Ambassador said.
