Amid government looking at various options to curb the black money menace,HSBC India Head Naina Lal Kidwai has said India can look at Germany-Switzerland type taxation treaty whereby taxes on secret Swiss bank accounts are shared without disclosing the identity of the offender.
… India can look at what is happening with Switzerland,where there is a tax treaty. Switzerland has give $5 billions to Germany,for example,that is tax without giving the names because we will never be able to give names of perpetrators, Kidwai said.
The revised Indo-Swiss Double Taxation Avoidance Agreement allows India to get banking and other information in specific cases that relate to the period starting from April 1,2011,with limited retrospective application.
In the case of treaties like that between Germany and Switzerland,Kidwai said that money comes back to the particular country with interest.
I believe there are many countries looking at doing similar agreements,they (India) should look at that. Anything that brings back money is better than the (unaccounted money) lying there even if it means not catching people (the tax offenders), she noted.
Unveiling the White Paper on black money in May,the government had said it was looking into various aspects of having a UK-Switzerland-type taxation treaty.
India will have to take a decision first as to whether such type of agreement will meet its national objective where it can get an opportunity to share taxes with the Swiss government on assets held by Indian residents in Switzerland without learning the identity of the defaulting Indian residents, the White Paper had said.
As per latest official data,the quantum of money held by Indians in Swiss banks stood about Rs 12,740 crore at the end of 2011.
Kidwai also suggested that the government consider issuance of sovereign bonds to attract foreign funds. Millennium Bonds kind of things could do some correction to ease the downward slide (of rupee). It will be a pity if it weakens beyond where it is, Kidwai. It (Millennium Bonds) could temporarily contain the downward slide in the rupee, Kidwai,here to participate in global India meet,said.
Retrieving black money may revive economy: FICCI
Panaji: The Federation of Indian Chambers of Commerce and Industry (FICCI) has said retrieving black money from abroad without disclosing the identity of the depositor could bolster the economy.
FICCI has given a 12-point agenda to (former) Finance Minister (Pranab Mukherjee) to revive economy,which has this issue of repatriation of the money (sic), FICCI President RV Kanoria said here.
Few countries like Germany have entered into agreement with Switzerland to get back their money,he said.