“As per estimates drawn for the first time since 1985 and compiled at the government’s behest by three think-tanks, the National Council for Applied Economic Research (NCAER), National Institute of Public Finance and Policy (NIPFP), and National Institute of Financial Management (NIFM), the size of black money was pegged at about 30 per cent of India’s gross domestic product or about a whopping ₹25 lakh crore.” – ENS
Expressing concern over Switzerland not sharing information on Indians who have parked their ill-gotten wealth in their banks, Finance Minister P. Chidambaram on Thursday threatened that India would raise the issue at multilateral fora like the G20.
As per estimates drawn for the first time since 1985 and compiled at the government’s behest by three think-tanks, the National Council for Applied Economic Research (NCAER), National Institute of Public Finance and Policy (NIPFP), and National Institute of Financial Management (NIFM), the size of black money was pegged at about 30 per cent of India’s gross domestic product or about a whopping ₹25 lakh crore.
In a strongly-worded two-page letter to his Swiss counterpart Eveline Widmer-Schlumpf, Chidambaram reminded her of the April 2009 declaration adopted by G20 leaders stating the “era of bank secrecy is over.”
In his letter, he also said India could examine further steps like declaring Switzerland a non-cooperative jurisdiction if non-cooperation continues.
Chidambaram said Switzerland has not honoured the terms of the Double Taxation Avoidance Agreement (DTAA) between the two nations, under which information about Indians with accounts in Swiss banks has been sought by the tax authorities.
“Switzerland’s refusal to provide information to India and other countries on the grounds that the source of the information requested is based on “stolen data” means that, in practice, Switzerland still believes in bank secrecy and is therefore not in tune with the modern era,” he said in the letter dated March 13.
Chidambaram said India would not hesitate to make it public in global stage about Switzerland still not complying with the standards of transparency and that the required legal and regulatory framework is still not in place in Swiss.
“Further, the Government of India may also have to raise this issue in other multilateral fora such as the G20,” he said.
“India was seriously ‘concerned’ that some Indian taxpayers may have parked substantial unaccounted income and assets in offshore jurisdictions, and it expects cooperation from those jurisdictions to deal with them effectively,” the finance minister added.
“In the event of continued denial of access to vital information, which Switzerland is obliged to provide under the DTAC, India may be constrained to actively consider the options available under our domestic laws,” he said.
“Switzerland cannot violate its obligations under the DTAC with India on any ground, including on moralistic grounds, when the Government of India has all along acted in good faith and has requested the information in a bona fide manner,” Chidambaram added. – The New Indian Express, 28 March 2014
See also
- Chidambaram is a traitor: Dr. Subramanian Swamy – HT
- Chidambaram is friend, father and philosopher of black money – Ram Jethmalani
Filed under: india, switzerland | Tagged: black money, corruption, corruption in india, indian black money, indian economy, indian finance minister, p. chidambaram, swiss banks | 3 Comments »
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