BERN/NEW DELHI, Sep 26: Paving the way for the automatic exchange of tax information with India and other nations, Switzerland has ratified the multilateral convention on administrative assistance in taxation matters.
The move marks a significant step in the continuing global efforts to crackdown on illicit fund flows in the system and do away with banking secrecy practices.
In efforts to clamp down on the black money menace, India has been seeking tax information from various countries, including Switzerland.
Stating that Switzerland is “taking yet another step in the area of international cooperation in tax matters,” Swiss Government today said it has ratified multilateral convention on administrative assistance.
The instruments of ratification for the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Administrative Assistance Convention) were today deposited with Paris-based OECD, according to a release.
The Organisation for Economic Cooperation and Development (OECD) sets the global tax standards and the convention has been prepared by it.
“In this way, Switzerland is fleshing out its commitment to implementing international standards in the area of taxation,” the release said.
Switzerland would start implementing the convention from January 1, 2017. It would be applicable for the exchange of information in tax matters in accordance with the rules of the convention and corresponding instruments for implementation.
The OECD and Council of Europe convention provides a legal framework for tax-related cooperation between countries. So far, more than 100 jurisdictions have signed the convention.
“Its modular system provides for multiple forms of cooperation in the area of taxation, including the exchange of information upon request and spontaneously, and the automatic exchange of information,” the release noted.
The convention was signed by Switzerland in October 2013 and then approved by Parliament in December 2015. (PTI)
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