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India, Switzerland to talk on tax treaty under OECD model

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:15 AM IST

The government today said it will renegotiate the taxation treaty with Switzerland under the OECD Model Tax Convention.

"...There is a provision in OECD...The article 26," Finance Minister Pranab Mukherjee told reporters when asked about the proposed talks with Swiss authorities later this year.

The negotiations are expected to take place in the wake of the issue of black money stashed away in Swiss banks that has created a political furore in the country, and India has sought details related to the same from Swiss authorities.

The Organisation for Economic Co-operation and Development (OECD) -- a grouping of mainly rich nations -- sets the international tax standards. Article 26 of the OECD Model Convention on Income and Capital, covers "tax of every kind and description" and allows for exchange of tax-related information between two countries.

In August, Mukherjee had said that India and Switzerland would meet in December to negotiate amendments in the Double Taxation Avoidance Agreement (DTAA).

The Swiss banks in August had said that India cannot come on a fishing expedition for secret bank account details.

Mukherjee had later made it clear that India was not interested in a "roving inquiry" over unaccounted money stashed away in Swiss banks.

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First Published: Oct 20 2009 | 8:43 PM IST

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