Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: due date for vat payment :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
 
 
News Headlines »
 Income tax dept notifies amendments for sharing taxpayer information
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya

Swiss banks offer to tax clients, India wants revised treaty
May, 31st 2010

Swiss banks have offered to tax the money deposited with them by Indians and other foreigners and "immediately deliver the cash" to governments of respective countries, rather than sharing the details of their clients.

Switzerland has come under increasing global pressure to share information about black money stashed in its banks. Possibly as a response, Swiss banks have now offered to tax their foreign clients' assets but are still wary of sharing details of their customers on grounds of privacy.

"The Swiss Bankers Association is convinced that the flat-rate withholding tax model it is proposing is a much more efficient way to ensure tax compliance than any system of automatic information exchange," a top SBA official said.

Admitting that opting for a withholding tax would have the advantage of safeguarding individual privacy, the official said an 'automatic exchange of information', as demanded by some countries, would not throw much light on the revenue to be generated by such exchange.

"By contrast, the flat-rate withholding tax model would immediately deliver cash," the official said. He added that the proposal is already generating interest among European countries which have been consulted so far. The official, however, did not elaborate on whether India has been consulted or not.

India, where there has been a long-running demand for concrete action to bring back black money stashed in highly secretive Swiss banks, began talks late last year for a revised tax treaty with Switzerland so that it could get details about defaulters.

Besides India, many other countries are also said to be looking at similar treaties, while the US last year had reached an agreement for giving access to close to 4,450 bank accounts of Americans with Swiss banking major UBS.

As an alternative to information exchange, Swiss banks have mooted the idea of a 'universal withholding tax' - wherein they would tax the earnings from foreigners' deposits and transfer the proceeds to the governments of the country concerned - and are currently discussing the same with the relevant authorities.

When asked about the proposal and its applicability to the wealth deposited by Indians in Switzerland, the SBA spokesperson had last September said it would be discussed with the Swiss authorities. In its latest paper detailing future strategies for the banking sector, SBA said it rejected the concept of a "fully transparent bank client".

"Swiss banks have developed a comprehensive flat-rate tax solution model as an equivalent solution to automatic exchange of information.

The model allows all taxable investment income and capital gains to be recorded in accordance with the tax law of the treaty state concerned and the tax payable on them to be withheld and transferred anonymously to the responsible tax authorities," the paper noted.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions