AUTOMATIC EXCHANGE OF FINANCIAL ACCOUNT INFORMATION 

 

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Topics covered: About automatic exchange of financial account information

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News Flash

Banking details of Indians with accounts in Switzerland will be available to tax authorities as the automatic exchange of financial account information regime kicks off between the two countries.

• It is a significant step in the fight against black money and the end of the era of “Swiss bank secrecy”.
• The Central Board of Direct Taxes frames policy for the Income-Tax Department.

 

What is Automatic Exchange of Financial Account Information( AEOI)?

• Automatic Exchange of Information (AEOI) is the exchange of information between countries without having to request it.
• AEOI exists to reduce global tax evasion, information can be found in this section in relation to:

1. different agreements between countries.
2. links to the relevant legislation
3. practitioner guides.

• The member countries of the G20, the OECD and other important financial centres, which total over 100 jurisdictions, have committed to implementing AEOI.
• With AEOI, information regarding bank and safekeeping accounts is reported by the banks to the domestic tax authorities.
• These then exchange the information with the tax authorities in their AEOI partner countries.

 

Key Highlights

• The first automatic exchange of financial account information (AEOI) under the provisions common reporting standard is started.
• India will receive information of the calendar year 2018 in respect of all financial accounts held by Indian residents in Switzerland.
• The information will include accounts that were closed during 2018.

 

Source: The Hindu

 

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