The Usual Fist-shaking at Switzerland

When it comes to concrete efforts towards recovering unaccounted money stashed away abroad, there is more talk than action.

When it comes to concrete efforts towards recovering unaccounted money stashed away abroad, there is more talk than action. Finance Minister P Chidambaram’s recent outburst at the Swiss government proved just that.

He lashed out at Switzerland for not sharing information on Indians hiding money in banks there, and threatened to drag the European nation to multilateral foras like G20. In a terse two-page letter, Chidambaram reminded his Swiss counterpart Eveline Widmer Schlumpf of the April 2009 declaration adopted by G20 leaders stating that the ‘era of bank secrecy was over’.

He added that India might examine further steps like declaring Switzerland a non-cooperative jurisdiction if non-cooperation continues. His contention: that Switzerland has not honoured the terms of the Double Taxation Avoidance Agreement (DTAA) between the two nations, under which information on Indians with accounts in Swiss banks has been sought by tax authorities.

Meanwhile, the Congress manifesto proposes appointing a ‘special envoy’ to recover such money, offering perhaps yet another jet-setting opportunity.

About The Author

arindam