Swiss authorities rule out fishing expeditions to net black funds

Swiss authorities discussing with Indian government officials for unearthing black money stashed there have said that India can only take up specific cases. The authorities clarified on Tuesday and called for furnishing concrete evidence of wrongdoing to enable them to follow up according to the country's banking secrecy laws. 

According to highly placed sources, the government is compiling the details and is expected to approach the Swiss authorities with specific cases. 

Swiss and Indian officials are to meet in December to carry the matter forward. 

Finance minister Pranab Mukherjee while speaking to a TV channel said the government was pursuing the matter with the Swiss authorities and that they have agreed to begin negotiations on the amendment regarding the avoidance of double taxation agreement in respect of the exchange of information. 

However, the Swiss authorities have made it clear that in no case would any fishing expeditions would be entertained. 

The Swiss Banks Association (SBA) has said that under Swiss and even OECD's Model Tax Convention, fishing expeditions, i.e., the indiscriminate trawling through bank accounts to unearth something interesting, would not be permitted. This meant that India cannot simply throw its telephone book at the Swiss authorities and ask if any of the listed people had a bank account, according to SBA head of international communications, James Nason.