CURRENT AFFAIRS

Detailed explanation-1: -Switzerland had agreed to the AEOI with India after a long process, including a review of the necessary legal framework in India on data protection and confidentiality.

Detailed explanation-2: -Automatic Exchange of Information (AEOI)

Detailed explanation-3: -The Common Reporting Standard (CRS) is an internationally agreed standard for the automatic exchange of information (AEOI) on financial accounts. Its goal is to increase the fiscal transparency of cross-border wealth management and combat offshore tax evasion.

Detailed explanation-4: -In 2014, the Standard for Automatic Exchange of Financial Account Information in Tax Matters1 (the AEOI Standard) was developed by the OECD, working with G20 countries, and subsequently endorsed by the Global Forum.

Detailed explanation-5: -The IGA between India and USA was signed on 9th July, 2015. It provides that the Indian FIs will provide necessary information to the Indian tax authorities, which will be transmitted to USA periodically. Under the IGA, USA will also provide certain information about Indians having financial assets in the USA.