committed itself to compliance with international standards in the area of tax administrative assistance.
Switzerland has also agreed to cooperate actively on the development of a global standard for automatic exchange of information to ensure the tax compliance of foreign asset management clients, while putting in place a robust regulatory system for identifying the beneficial owners of all types of legal entity, including trusts and domiciliary companies.
A new framework has also been put in place for exchange of information on request and spontaneous exchange of information in a much more effective manner, while work is underway to enable administrative assistance for previously committed tax crimes within the last three years.
Switzerland's tax treaty with India also provides for "exchange of information in tax matters to the widest possible extent without allowing the contracting states to engage in fishing expeditions or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer".
The Swiss regulations also state that "the details to be supplied in the administrative assistance request are important procedural requirements to ensure that fishing expeditions do not occur, but they must not be interpreted in such a way that they frustrate effective exchange of information".
Swiss government has said that it would honour administrative assistance requests, if the requesting country identifies the taxpayer, "although this identification can ensue in a way other than by indicating the name and address".
The requesting country would also need to indicate the name and address of the alleged holder of the information, such as banks, if such information is known to it.
In the case of missing data on the information holder, Switzerland will provide administrative assistance if "requests are in line with the principles of proportionality and practicability in accordance with internationally applicable standards".
In Delhi, BJP spokesperson Siddharth Nath Singh said, "...it just shows the Narendra Modi government took a brave decision to form SIT which was pending since 2011. And in our first cabinet meeting we decided to form the SIT."