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India, Switzerland sign revised taxation treaty

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Mon, Aug 30 08:39 PM

New Delhi, Aug 30 (PTI) India and Switzerland today signed a treaty that will enable exchange of information on tax evaders, considered a must for getting details on unaccounted funds stashed away by Indians in Swiss banks. The treaty is a revised version of the existing Double Taxation Avoidance Agreement between India and Switzerland and was signed by visiting Swiss Foreign Minister Micheline Calmy -Rey and Finance Minister Pranab Mukherjee.

Though the two leaders did not take queries from media persons, the Switzerland government and banks have been insisting that the exchange of information as per OECD norms could only take place after signing a revised treaty. Black money has become a major political issue in India, with the the government promising to take every possible step to bring back this unaccounted or criminal money.

Mukherjee is expected to make a statement on the agreement in Parliament tomorrow. Later, the Finance Ministry said in a statement, "A protocol amending the existing Double Taxation Avoidance Agreement was signed here today between Republic of India and Swiss Federal Council.

" Besides the two dignitaries, Finance Secretary Ashok Chawla, Revenue Secretary Sunil Mitra, Chief Economic Advisor Kaushik Basu and Swiss Ambassador Philippe Welti were also present on the occasion. The Swiss Federal Department of Finance (FDF) said in a separate statement, "The revised Double Taxation Agreement contains provisions on the exchange of information in accordance with the OECD standard, which were negotiated in line with the parameters decided by the (Swiss) Federal Council.

" The issue of Indians having secret Swiss bank accounts is a political hot potato and was a poll plank during last year''s...