European banks tell Indian clients to comply with tax laws
Posted on: 31/Aug/2015 10:39:22 AM
Some Swiss and European banks have started to ask Indian clients to disclose their accounts to tax authorities back in India. The move comes in the wake of the new black money law that has been passed at the Center. These banks do not wish to be accused of hoarding untaxed assets.
The banks are mostly headquartered in Switzerland and London. In addition to asking their Indian clients to take advantage of the `one time compliance option` that the government has given, they also require them to give them undertakings that they are in compliance with the laws of their home countries (in the case of NRIs and resident Indians).
The government`s new provision on those who do not comply states that it is applicable to those `abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to tax payable under this Act which is false and which he either knows to be false or does not believe to be true or to commit an offence.`
