Though he did not spell out the options, these may include making unavailable to investors from Switzerland the benefits under the double-taxation avoidance agreement between the two countries.
“In view of your assurance that the Swiss government is keen to cooperate with India and find possible ways of complying with our requests for information under DTAC, a bilateral discussion at the official level was held in New Delhi on February 4 and 5, 2014.
“However, no progress was made during the discussions and the Swiss delegation merely reiterated their previously stated positions and refused to consider any options or alternate approaches,” Chidambaram said in the letter to the Swiss Finance Minister.
He said Swiss authorities through a letter dated February 20, 2014 suggested that they are “closing” the requests made by India in 562 cases.
“You would appreciate that, such a situation, where there is no effective exchange of information between India and Switzerland despite a clear legal obligation of Switzerland under Article 26 of the DTAC, is a matter of grave concern for India,” he said.
