Paving the way for the automatic exchange of tax information with India and other nations, Switzerland has ratified the multilateral convention on administrative assistance in taxation matters. In this move marks a significant step in the continuing global efforts to crackdown on illicit fund flows in the system and do away with banking secrecy practices.

• In efforts to clamp down on the black money menace, India has been seeking tax information from various countries, including Switzerland. The instruments of ratification for the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Administrative Assistance Convention) were deposited with Paris-based OECD.

• Stating that Switzerland is “taking yet another step in the area of international cooperation in tax matters,” Swiss government said it has ratified multilateral convention on administrative assistance.

• The Organisation for Economic Cooperation and Development (OECD) sets the global tax standards and the convention has been prepared by it. Switzerland would start implementing the convention from January 1, 2017. It would be applicable for the exchange of information in tax matters in accordance with the rules of the convention and corresponding instruments for implementation.

• The OECD and Council of Europe convention provides a legal framework for tax-related cooperation between countries. So far, more than 100 jurisdictions have signed the convention. The convention was signed by Switzerland in October 2013 and then approved by Parliament in December 2015.