In an obvious rebuttal of the recent statement of CBI Director A.P. Singh on Indians being the largest depositors of illegal money in Swiss banks, Switzerland on Friday stated that “such estimates and statistics lack evidence and are uncorroborated.”
The Embassy of Switzerland, in a press statement, sought to “make a clarification in view of unsubstantiated media reports that have been recently published about Switzerland and Swiss Banks.”
Without referring to, though stung by, the CBI chief's estimates of illegal funds held by Indians in foreign locations, the statement said: “Switzerland is not a tax haven. There have been several speculations about the amount of wealth held by Indians in Swiss Banks. Such estimates and statistics lack evidence and are uncorroborated”.
Speaking at the inauguration of the first Interpol global programme on anti-corruption and asset recovery here on Monday this week, Mr. Singh said: “It is estimated that around $500 billion of illegal money belonging to Indians is deposited in tax havens abroad. Largest depositors in Swiss banks are also reported to be Indians.” He went on to state that India, in particular, “has suffered from the flow of illegal funds to tax havens such as Mauritius, Switzerland, Lichtenstein and British Virgin islands”.
Throwing more light on the issue, the Embassy statement said: “The Swiss government has been forthcoming in its cooperation with all foreign governments in cases of tax evasion as well as cases of tax fraud, that have been presented within the framework of bilateral treaties”.
The Double Taxation Avoidance Agreement (DTAA) between India and Switzerland, it said, provided a legal framework within which administrative assistance could be sought in particular cases of tax evasion or tax fraud. While the earlier treaty did not include tax evasion, but only tax fraud, the revised DTAA that came into force on October 7, 2011 allowed for exchange of information on tax fraud as well as on tax evasion cases.
As for its applicability, the statement noted that the provisions of the revised agreement applied in India to income originating in tax years starting on or after April 1, 2012, while in Switzerland, they applied to income originating in tax years that began on or after January 1, 2012. “In the case of the exchange of information, the provisions apply to information referring to tax years which start on or after January 1, 2011,” it said.
Meanwhile, the government said the CBI chief's statement was based on a report prepared and submitted by a committee appointed by the Supreme Court.
“I have spoken to the CBI Director and he told me that he made the statement on the basis of a report prepared by a Supreme Court-appointed committee … He [CBI chief] mentioned this [figure of US$ 500 billion] on the basis of this report,” Minister of State for Personnel V. Narayanasamy said.
Just realize it: all that money that used to be stashed away in Switzerland, it is no longer there....due to the information exhange in the new DTA it has been transfered to real Offshore Heavens such as Singapore, Dubai, Macau, BVI, Channel Islands etc....there is full fledge information exhange and thus Switzerland is no safe location to hide money but there are plenty of other attractive offshore heavens with no DTA...but does it really matter? No...since there is a lack of political willigness to tackle the issue...Indian politicians are more eager than ever to fill their pockets and there are still attractive locations where money can be safely stashed away...
There should be a international movement against this.This matter is
equally important as is the nuclear disarmament.Powerful nations like
USA have already taken away there share,......what about countries like
INDIA.
Is this "embassy statement" signed off by any ranking diplomat, or is it a standard letter they routinely issue? Just earlier this month, US Federal Prosecutors had indicted (according to a Reuter news report) Wegelin, one of the oldest Swiss banks for aiding tax fraud by US nationals!
Switzerland does'nt consider tax evasion or other non reporting income as a crime.Further they will not reveal the details as it will loose the bank's main purpose and its core activities.
Yes, nobody here in India is sure about the exact amount stashed in Swiss Bank or others. We can't expect Swiss to come up with all the Indian account figures as they have their own rules and laws. Should we argue the Swiss to bend their own rules? Are not we expecting too much from others while we are not doing enough to curb corruption? Let us remember that when we are pointing our finger to others, our own three fingers are pointing to us.
Dear Investers if the Switzerland banks freese your deposit and say they received nothing will you get the legal support from India ?.What guarantee that the stashed money will help you when in need? Can't it follow the foot steps of an ordinary blade company if the depositores fear to disclose the source of fund and lack legal backing.If the economic crisis forcess the banking sector to resort to austerity measures can't the Swiss banks think of pocketing of Idian deposit to tide over such a crisis,can any body prevent such a move.An International Blade Mafia is in the making ?
“such estimates and statistics lack evidence and are uncorroborated.”
If so simply publish the names and account details with evidence.We Indians shall believe that audhentic figures with evidence.OR does it means that actuals will be in multiples of what is estimated.Come on Indian depositores witdra your stashed money and say the worls that you are ready to invest in India.After all it is Indian's money only.
$500 billion. Wow! Does this figure not come as a BIG SLAP on the faces of those honest tax payers! Does this figure not make one wonder why one should be a honest tax payer whilst the power and money mongers continue to rape the country's prosperity? It is no surprise India is one of the most corrupt country in the world, we can see where all the bribes finally end up? By the way, one wonders how these funds made its way to the Swiss bank!
Let us do sway with the estimates and statistics. Let the Swiss Government come clean on the names of Indians and the quantum of money in various currencies slashed away by them. Let the Swiss Govt come clean on the profits the swiss bankers made on the funds righfully belonging to the Indians. I am sure that they are not man enough to take such a step.
It is understood that Swiss is not supporting the Indian government,and the reason is also known to everyone,but is that mean India is not going to do anything?The reality is different the indian government is also not serious enough to bring the black money back.Why our government fails to take strong steps when it is needed.It can be an issue related to the security,terrorists,or black money,we fail.Why we can't take decision like America does.
How funny...the goverment know everything but not doing
anything..reason...all that money belongs to the minsters
The Swiss economy runs on such corrupt foreigners stashing money in their banks. If not corrupt money, they would have to survive on making chocolates, swiss cheese, luxury watches, the cuckoo clock and tourism - all of which, one suspects, will not give them one of the highest standards of living in the world.
The money deposited abroad is an absolute secret.Where is the question of corroboration?If the figure specified is erroneous,what is the actual amount?If everything is transparent why the truth be expressed vaguely.After all we Indians whose money other countries are safeguarding for the sake our brothers or sisters,have the right to know at least the quantity.Even if it is not available to us right now we can at least boast that we have so much and we will become a rich country soon.
“the amount of wealth held by Indians in Swiss banks. Such estimates r/>and statistics lack evidence and are uncorroborated,” . For technical legal hairsplitting none can beat Swiss. Recall incident of claim of the survivors of the Holocaust whose families' entire fortunes were stored in Swiss accounts. They were denied settlement under the legal pretext demanding death certificate knowing fully well that millions were murdered in the Holocaust with no official record of their deaths.
now if a big system like that of CBI is out with some proof and datas it is very much important to accept the fact that they must have done it thoroughly and with proper research so a good job and it was sad to see the way swiss embassy replied but hopefully the illegal parking for money would soon be over at least can hope so
Politicians amass way too much wealth beyond their disclosed means in India. Real estate, education, cooperative banks, and NBFC businesses are being aggressively used for parking and laundering unaccounted, and often times illegal, funds. We do nothing about this thing that is right under our noses, and make too much noise about money in Switzerland.
Will the Swiss Embassy in New Delhi ask the banks in Switzerland to
publish the names, account numbers and the current balances in the
accounts. Switzerland is one country which has no qualms about
collecting deposits from scamsters, corrupt politicians, mafia and
druglords and utilising it for their country's benefit. When
corruption is a crime in any country in the world, what is Switzerland
talking about secrecy clause as a Bank...India should actually cease
diplomatic relationship with Switzerland till they reveal the
information ban Indians going there...but who will bell the cat?
Every politician in India, senior bureaucrats, Corporate rats all have
accounts there...so why will take any action? Remember in 1991, the
name, photograph and the amount of US $ 2 BN was published for the
world to see...and our government was blind to it because it belonged
to the first family of a political party...
It is now at a serious level. Earlier Swiss was marketing (encouraging) for stashing Black Money and park it in their bank. But now it is Blackmailing (cautioning) that if the existing black money depositors do not increase it's deposit by at least 20% (say) then the service charges will be increased by 200%. Now the (poor) depositor has only two option (1) To do more illegal activities to support Swiss's demand or (2) Withdraw all the money... but then this has further implications that all large transactions has to be reported which means the poor depositor has only option to be more corrupt.
The economy of switzerland depends on such deposits. So they would not be very happy to see this go. Notice that he did not deny that it is incorrect, but only uncorraborated by evidence.
It's not a tax haven, in fact it's a heaven for corrupted people to park their money in that country. It's big money, no doubt Switzerland wants to use for it's own development, why will it allow to get rid of such a huge money. In other way, they will market it in such a way that ... "Come people ... come, hide your all black money here, don't worry, it will be safe, safest actually. Also, we will never allow to show your name anywhere. It doesn't matter from where you get this money, black or white ... we care a damn. You are safe ... come on ... get it coming".
As allegedly the estimate of the premiere investigating agency of the Govt of India, ie the CBI, is wrong, and its Director’s statement (no less!), “around $500 billion of illegal money belonging to Indians is deposited in tax havens abroad. Largest depositors in Swiss banks are also reported to be Indians” is false, WOULD the Embassy of Switzerland in New Delhi be kind enough to publish the accurate figure, duly corroborated by evidence, so that the Swiss Govt in turn is not accused of making statements of wild-underestimate, to further any of their undisclosed national interests or any other agenda? If the Swiss Govt chooses not to make a full and substantiated statement, would it not be most unfair to accuse the Director of the CBI, a very senior official of the Govt of India, of misleading the world at an Interpol programme in New Delhi on 13 Feb 12, and would such an action not be uncharacteristically undiplomatic of the Swiss Govt?
The apologists of tax evasion are quick!
This is about morals. If the funds parked in tax havens were obtained
legitimately and the owners paid the taxes they were legally required,
secrecy would be unnecessary.
Governments use taxes to provide services. Infrastructure, education
for all, health care, support for the needy. In democracies people
collectively decide on what to spend that money on.
The motives of the accused are greed, no two ways around it. Tax
havens are free-riding on the wealth generated by people elsewhere.
The clients are rich people who refuse to contribute to the systems
and infrastructure that made them rich, and in many cases have
obtained their money in illegal ways. Where does all the drug money in
the world go, where the money of dictators of poor countries? Can you
sleep every night with the knowledge of 45% Indian Kids sleeping
Hungry?
Tax havens are thieves' paradises. Close them.
Wow, what a surprise, is it not! After all, we were all expecting the Swiss would actually accept that their country's banking system is universally used (and synonymous with) tax evasion, money laundering and drug/terror financing ... In fact we were all expecting they would just close down their entire banking system and return the money to the rightful taxpayers across the world! What a surprise, how wrong we all were!
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