WHILE replying to a question in the Rajya Sabha today, the Minister of State
for Revenue, Mr S S Palanimanicka, said that upon entry into force, the Amending
Protocol between India and Switzerland will amend, inter-alia, the article
concerning Exchange of Information in the existing Double Taxation Avoidance
Agreement (DTAA) between the two countries to specifically provide for exchange
of banking information as well as information without domestic interest. The
Amending Protocol contains a provision that the requesting state has to provide
the name of the person(s) under examination or investigation and, if available,
other particulars facilitating that person’s identification such as address,
date of birth, marital status, tax identification number. Similarly, it provides
that the requesting state also has to provide the name and, if available,
address of any person believed to be in possession of the requested information.
The Amending Protocol also provides that these clauses contain important
procedural requirements that are intended to ensure that fishing expeditions do
not occur, nevertheless they need to be interpreted in order not to frustrate
effective exchange of information. Thus, upon entry into force, the Amended DTAA
will enable India to get banking information in specific cases for a period
beginning 1st April, 2011 and thereafter.
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