Swiss accounts: FBR team holds talks with tax authorities

The Federal Board of Revenue (FBR) has held the first round of negotiations with the Swiss tax authorities to revise the Convention for the Avoidance of Double Taxation vis-a-vis Taxes on Income and clauses pertaining to exchange of information. On the conclusion of the visit of senior tax officials to Switzerland, sources told Business Recorder here on Tuesday that Pakistan has taken the first step in the right direction to re-negotiate and upgrade treaty on Avoidance of Double Taxation with Switzerland to tax undeclared money deposited in Swiss banks by Pakistani nationals. 

Both the sides have agreed to revise the whole convention with modifications in clauses pertaining to the exchange of information. The Pakistani delegation comprising senior tax officials recently concluded its visit to Switzerland. The FBR officials discussed the revision of the entire convention with the Swiss tax authorities. During the visit of FBR officials to Switzerland, the Pakistani delegation has also took up the issue of access to banking information under the said treaty, they added. 

The government is seriously working on seeking assistance from the new Swiss law referred to as ‘The Restitution of Illicit Assets Act, 2010’ that allows the Swiss government to exchange confidential information with governments whose citizens have ill-gotten monies stashed in Swiss banks.