Indian government has made major breakthrough in retrieving black money stashed in secret Swiss account when 100 account holders agreed to furnish details of their holdings for lesser penal action for evasion.
Faced by non-cooperation from Switzerland owing to the alpine nation’s "domestic legal barriers" and "treaty limitations", the Finance Ministry’s probe wing under the Central Board of Direct Taxes (CBDT) confronted the people who were named in the secret list of at least two Swiss banks that was provided to them "through both official and unofficial channels" during the last financial year, news agency PTI reported quoting undisclosed sources.
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The Special Investigation Team unearthing black money has, on the back of the data, submitted a report to the country’s Supreme Court.
The Income Tax department, the note said, has begun prosecution action in these over 100 cases and they will be charged for evasion of taxes on this hidden income.
The taxman has also initiated action to discover the "source of income" of these entities so as to unearth any other instance of tax evasion linked to these accounts.
India is one of the 36 countries with which Switzerland has signed treaties to provide administrative assistance in tax matters in accordance with international protocols as mandated by the Paris-based global economic body, the Organisation for Economic Cooperation and Development (OECD).
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