India and Switzerland sign Joint Declaration for Exchange of Information on Bank Accounts abroad (Black Money)
India ratified Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) in June 2012 and has also signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA) based on Common Reporting Standards (CRS) on 3rd June, 2015. India and Switzerland signed the ‘Joint Declaration’ for implementation of Automatic Exchange of Information (AEOI) on the 22nd November, 2016. Through this Joint Declaration, both the jurisdictions intend to introduce on a reciprocal basis automatic exchange of financial account information between each other beginning in the year 2018 (first transmission of data in 2019). The Joint Declaration is subject to MAC being in force in each jurisdiction, signing of MCAA by both jurisdictions, notification of each other under section 7(1)(f) of the MCAA and adequate confidentiality and data safeguards in each jurisdiction. India has already signed the MCAA and has under section 7(1)(f) of MCAA conveyed to the Coordinating Body its list of intended exchange partners which includes all the signatories of MCAA.
CBDT has issued press release about signing of ‘Joint Declaration’ by India and Switzerland for the implementation of Automatic Exchange of Information (AEOI) on Bank Accounts and Black Money stashed abroad, as under:
Fighting the menace of Black Money stashed in offshore accounts has been a key priority area for this Government. To further this goal, Mr. Sushil Chandra, Chairman, CBDT on behalf of India and Mr. Gilles Roduit, Deputy Chief of Mission of Swiss Embassy in India, on behalf of Switzerland, signed the ‘Joint Declaration’ for the implementation of Automatic Exchange of Information (AEOI) between India and Switzerland today.
As a result, it will now be possible for India to receive from September, 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.