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Indian government on Tuesday has mentioned that it will hold negotiation talks with Switzerland once again regarding the taxation treaty, with the OECD Model Tax Convention as the base.
"...There is a provision in OECD...the article 26,"said the Union Finance Minister Pranab Mukherjee while addressing the media on the same.
He mentioned that this proposal has been put forward by the government as the Swiss banks had withheld data regarding black money from India, which had created a political uproar in India.
The international standard for tax is generally set by the Organisation for Economic Co-operation and Development, which has developed nations as its major members. The Article 26 of OECD Model Convention on Income and Capital “covers tax of every kind and description" as well as provides for bilateral exchange of tax information.
The Finance Minister had mentioned in August that India will be holding talks with Switzerland for discussing the amendments to Double Taxation Avoidance Agreement. The Swiss banks had mentioned that India cannot demand for information on secret bank account.
Mukherjee had later made it clear that India was not interested in a "roving inquiry" over unaccounted monetary aspects which have been undisclosed by the Swiss banks.
The Swiss Ambassador to India, Phillippe Welti but had mentioned, in the recent past, that Swiss Banks were ready for disclosing details of secret accounts dealing as well as all other details on black money transactions.
"Switzerland will completely live up to the legitimate expectations out of the treaty... for release of data in the future. The (amended) treaty would be possibly adapted, revived and then we will live up to the new obligations... Of course we will release data," he had said.
