Lok Sabha Question No. 811 (UNSTARRED), answered on 2018-12-14
Subject: Money Deposited by Indians in Swiss Banks
Ministry: FINANCE
Asked by: KALYAN BANERJEE, BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION NO. 811

## TO BE ANSWERED ON FRIDAY, THE 14 TH  DECEMBER 2018

AGRAHAYANA 23, 1940 (SAKA)

## MONEY DEPOSITED BY INDIANS IN SWISS BANKS

811: SHRI KALYAN BANERJEE:

## SHRI B. SENGUTTUVAN :

Will the Minister of FINANCE be pleased to state:

- (a) whether the money deposited by Indians in Swiss Bank rose over 50 percent in last 4 years period from 2014 and if so, the details thereof;
- (b) whether India has moved to 73rd placed in terms of the volumes of money deposited in Swiss Banks and if so, the details thereof;
- (c) whether the Government has received any report details of Swiss National Bank therein and if so, the year-wise growth and the deposit source thereof;
- (d) the details of present status of bilateral pact on automatic exchange of transaction information with the Switzerland Government thereof; and
- (e)  the  details  of  proactive  steps  initiated  by  the  Governments  to  bring  back  the  unaccounted  black money from the Swiss Bank Accounts?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a), (b) & (c): Swiss authorities have shared the following information regarding the Swiss National Bank (SNB) figures quoted in the media " The figures published by the SNB are regularly mentioned in the Indian  media  as  a  reliable  indicator  of  the  amount  of  assets  held  with  Swiss  financial  institutions  in respect of Indian residents. More often than not, the media reports have not taken account of the way the .figures have to be interpreted, which has resulted in misleading headlines and analyses. Moreover, it is frequently  assumed  that  any  assets  held  by  Indian  residents  in  Switzerland  are  undeclared  (so-called 'Black Money) ."

Further they have said " To analyze Indian residents' deposits held in Switzerland, another data source should  be  used  This  is  the  so-called  "locational  banking  statistics",  which  the  SNB  collects  in collaboration with the Bank for International Settlements (BIS). "

The data collected by Swiss National Bank in collaboration with Bank for International Settlements (BIS) shows that the loans and deposits of Indians, other than Banks, in the Swiss banks decreased by 34.5% in the year 2017 as compared to 2016. Further, there has been significant reduction in Swiss non-bank loans and deposits of Indians by 80.2% between 2013 and 2017.

(d):  India  and  Switzerland  are  signatories  to  the  Multilateral  Convention  on  Mutual  Administrative Assistance  in  Tax  Matters  (MAC)  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 with first transmission in 2019.

(e): India has Double Taxation Avoidance Agreement with Switzerland which entered into force on 29th December, 1994. Protocol amending the agreement was signed on 30th August, 2010 and entered into force  on  7th  October,  2011.  The  provisions  of  the  India-Switzerland  DTAA  amended  by  the  Protocol facilitate  exchange  of  information  on  request  basis  in  the  cases  under  investigation.  The  information exchanged is utilized to conclude the investigations and tax the unaccounted income and assets of the taxpayers.  To  enhance  cooperation  in  this  area,  bilateral  meetings  are  held  between  the  Competent Authorities of the two sides on regular basis.

India  and  Switzerland  are  also  signatories  to  the  Multilateral  Convention  on  Mutual  Administrative Assistance in Tax Matters (MAC). India and Switzerland have, for automatic sharing of financial account information, signed a Joint Declaration on 22 nd November, 2016 for activation of the AEOI in tax matters between  the  two  countries.  The  necessary  legal  arrangements  have  been  put  in  place  and  from  2019 onwards, India will receive information of financial accounts held by Indian residents in Switzerland for the  calendar  year  2018  and  subsequent  years.  This  will  be  useful  in  tracing  unaccounted  income  and assets of Indian residents in Switzerland and bringing the same to tax.