Switzerland to share information on real estate assets owned by Indian nationals
India will get this month the third set of Swiss bank
account details of its nationals under an automatic exchange of information
pact with Switzerland and this will include for the first time the data about
real estate properties owned by Indians there, officials said.
Marking a key milestone in the Indian government's fight
against black money allegedly stashed abroad, India will get this month the
complete information on flats, apartments and condominiums owned by Indians in
Switzerland as also on earnings made from such properties to help it look into
tax liabilities associated with those assets.
The move assumes significance on the part of Switzerland as
well as the European Alpine nation is trying hard to reposition itself as a key
global financial centre while warding off the long-persisting perception about
the Swiss banking system being an alleged safe haven for black money.
While it would be the third time that India will get details
about bank accounts and other financial assets held by Indians in Switzerland,
it will be the first time that the information being shared with India would
include information about the real estate assets.
While the Swiss government has agreed to share details of
real estate assets, the information about contributions to non-profit
organisations and other such foundations, as also details on investments in
digital currencies still remain out of bounds from the automatic exchange of
information framework, officials said.
Experts and those engaged in the business of attracting
investments to Switzerland said the move would help clear misconceptions about
all fund inflows into Swiss assets being illicit and would go a long way in
establishing Switzerland as a preferred investment destination, including for
real estate properties.
India had received the first set of details from Switzerland
under AEOI (Automatic Exchange of Information) in September 2019. It was among
75 countries to get such information that year.
In September 2020, India received the second set of Swiss
bank account details of its nationals and entities, along with 85 other
recipient countries with whom Switzerland's Federal Tax Administration (FTA)
exchanged information on financial accounts within the framework of global
standards on AEOI last year.
From this year, Switzerland's Federal Council, the country's
top governing body, has decided to implement a key recommendation of the Global
Forum on Transparency and Exchange of Information for Tax Purposes, under which
Swiss authorities will also share details about investments made by foreigners
in the Swiss real estate sector.
However, some other recommendations of the Global Forum,
including about sharing of information on digital currency accounts and
contributions made to foundations and non-profit organisations are yet to be
accepted and therefore those details would not be shared by Switzerland with
India or any other countries for now.
Hectic lobbying is underway globally to convince Switzerland
to start sharing information about digital currency accounts and contributions
made to non-profit entities as well.
In each of the last two years, Switzerland has shared
details about nearly three million financial accounts with various
jurisdictions, while the count is expected to be higher this year.
For the last two years, India has been among prominent
countries with which Switzerland has shared details about financial accounts of
clients of Swiss banks and various other financial institutions, while it is
also expected to figure high this year with regard to details about real estate
properties.
Resident and non-resident Indians, as well as Indian
companies, would account for a sizeable number in the overall list of those
figuring in this year's exchange of information by Switzerland, officials privy
to the development said.
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