Swiss banks can share info with India, if...

Switzerland has said exchanging details of bank accounts with India would be possible once the tax treaty, aimed at tracking black money, between the two nations is revised.

"India and Switzerland are in renegotiations to adapt the existing double taxation treaty. Once this revised double taxation treaty comes into force, it will be possible to exchange account details," Swiss Federal Tax Administration spokesman Beat Furrer told PTI in an email reply.

Furrer further said that both the countries have an existing double taxation avoidance agreement (DTAA) with no exchange of information clause. "That's why no account details are exchanged between the tax administrations of the two countries," he added.

However, Switzerland has changed its exchange of information policy in March 2009 and committed to the OECD standard regarding administrative assistance on tax matters.

The OECD tax convention code envisages member-countries to extend mutual help,  coordination and information sharing in regard to tax evasion.

Earlier, the Swiss Bankers Association had said the country's law and tax model convention do not permit a name-fishing expedition by a third country.

India had also denied that it was on a 'fishing expedition' seeking information about every banking account in Switzerland, allegedly deposited by Indians.

Last month, tax officials visited Switzerland to start renegotiating the DTAA.

However, when asked about the development in this direction, Furrer declined to comment, saying, "We do not communicate the content of ongoing negotiations."

When asked about the renegotiations, CBDT officials merely said, "yes, we are in the process of renegotiating the double taxation avoidance agreement (DTAA) with the Swiss Confederation," and refused to divulge further details.

Furrer further said India is member of the Asia-Pacific Group on Money Laundering, an associate member of the Financial Action Task Force (FATF), which is the most important body in the international fight against money laundering and terrorist financing,  besides enjoying an 'observer status' with the FATF.

"Observers are normally candidates to become member of the FATF as soon as an evaluation has shown that a country fulfills the FATF-standards," he said.

Black money allegedly stashed by Indians in Swiss banks was an election issue at the past general elections.