On Saturday, the government denied reports that Indians had illegal funds in Switzerland and stated that they had contacted the Swiss authorities to clarify the details of the deposits. These reports refer to the annual data of the Swiss Central Bank, involving deposits of natural and legal persons in India, and also through India.
Despite the decline in customer deposits, due to the sharp increase in investment in securities and similar instruments, UBS branches and other financial institutions increased by 286% from 6,625 rupees at the end of 2019 to 20,700 rupees. Said that the increase in total funds from Indian banks to Swiss banks reversed the two-year downward trend and pushed this figure to a 13-year high.
According to reports, these figures do not include “Indians, NRIs or other persons who can represent third-country organizations in any funds deposited in Swiss banks. The EU Ministry of Finance issued a statement stating that India and Switzerland have signed the agreement. Multilateral Tax Assistance Agreement (MAAC). The two countries also signed the Multilateral Competent Authority Agreement (MCAA), which enables the automatic exchange of information (AEOI) between the two countries to exchange information about financial accounts.
It also stated that there are five factors that can explain the increase in Swiss deposits, including “Due to the activities of the Swiss bank branch in India” and the increase in commercial transactions and deposits in interbank transactions. 2 countries. “This also includes the increase in the capital increase of the Swiss subsidiary in India and the increase in liabilities related to outstanding financial derivatives,” he said.
The EU Ministry of Finance announced in a statement that India and Switzerland have signed the Multilateral Agreement on Mutual Administrative Assistance in Tax Matters (MAAC). The Ministry of Finance added that India and Switzerland exchanged relevant agreements in 2019 and 2020. Financial information of its residents. Due to the existing legal system for the exchange of financial account information (which has a significant deterrent effect on tax evasion caused by overseas secret assets), there does not seem to be an important opportunity to increase Swiss bank deposits. Undeclared income from Indian residents.