In a major boost for India and other countries seeking details on suspected black money stashed in Swiss banks, Switzerland on Tuesday agreed to automatic exchange of information and mutual administrative assistance in tax matters with overseas authorities. The development, which virtually pulls down the famed secrecy wall surrounding Swiss banks, would lead to Switzerland providing all forms of mutual assistance including exchange on request, spontaneous information sharing, tax examinations abroad, and assistance in tax collection.
Switzerland has been facing intense global pressure to cooperate with overseas authorities to share information about accounts in its Swiss banks, which have long been known to be misused by entities from across the world, including from India, for evading taxes in their local jurisdictions.