New Delhi: Ahead of his three-day United States visit starting June 6, Prime Minister Nrendra Modi will Switzerland on June 5.
It is most likely that the leaders of two nations will sign an agreement to share the details of Indians who have opened accounts in Swiss banks.
Recently, the Swiss Federal Council started the process for an ordinance to put in place a mechanism for automatic exchange of tax information with India and other countries.
As part of global efforts to curb flow of illegal funds in the financial system, Switzerland has agreed to be part of the automatic tax information exchange framework.
According to Swiss government, the ordinance has provisions that are required to implement the automatic exchange of information, including implementing provisions on the tasks of the Federal Tax Administration (FTA).
Having an automatic tax information exchange mechanism with Switzerland would help India in its clamp down on illicit fund flows.
Both countries have stepped up their cooperation on tax matters related to black money allegedly stashed by Indians there.
Almost 100 countries and territories, including India, have declared their intention to the Global Forum on Transparency and Exchange of Information for Tax Purposes to implement the AEOI standard.
Earlier this month, the Finance Ministry had claimed to unearth as much as Rs 50,000 crore of indirect tax evasion and another Rs 21,000 crore of undisclosed income.
In a statement, the ministry noted that the crackdown on black money has led to seizure of Rs 3,963 crore of smuggled goods in two years, a 32% jump over the previous two years.
