HSBC clients based in India, who featured on the leaked list of offshore account holders in its Swiss private banking arm, have been asked to authorise a party in Switzerland so the Swiss government can obtain their consent for sharing information with Indian authorities, or face a potential public naming and shaming
Individuals have been sent emails which state that Switzerland is now prepared to give ‘administrative assistance’ to the Indian tax authorities, who have been trying to glean details of the offshore accounts for the past five years.
Customers have 30 days in which to nominate a third party based in Switzerland, to manage or challenge the disclosure process on their behalf, according to a spokesman for Switzerland’s State Secretariat for International Finance.
Under Swiss law, it is not possible to send tax inquiries to citizens of other countries, which is why the request for information needs to be handled via a third party based in the country.
Anyone who fails to provide a Swiss contact risks having their name published in Switzerland’s official gazette.
There is no information on how many Indian national are affected by the decision, which relates to accounts that were operational on or after 1 January 2011, with the Swiss spokesman saying ‘only a very small number of HSBC clients are concerned'.
For further information about the HSBC Swiss accounts and the Treasury Select Committee hearing over the issue, click here
