President backs govt's tax agreement with Switzerland

From Snehesh Alex Philip
On Board Special Aircraft, Sept 30 (PTI) Indian President
Pratibha Patil Friday supported the government's new tax
information exchange treaty with Switzerland and hinted that
the issue of black money stashed in Swiss banks would be
raised during her interactions with the country's leadership.
Patil, who is on a two nation state visit to Switzerland
and Austria, said once the Double Taxation Avoidance Agreement
(DTAA) comes into force, it will provide a framework for
exchanging tax related information.
When asked if the issue of black money stashed in Swiss
banks would be raised during her trip, Patil said: "There will
be discussions on a whole gamut of bilateral relations and
financial areas also."
She said once the ratification process of the amending
protocol to DTAA is complete and "when it comes into force, it
will provide a framework for exchange of tax related
information."
Though the agreement has been introduced in the Swiss
Parliament, it will have to wait for stipulated 100 days
before it comes up as a ratified document.
Thereafter, there will be exchange of letter between
Switzerland and India. The 100-day limit will expire only on
October six. One of the most crucial elements in the amended
protocol is Section 26 relating to exchange of banking
information.
Meanwhile, noting that economic and commercial
cooperation have emerged as the core of India-Switzerland
relationship, Patil said in a statement that other areas she
would like to highlight in bilateral context were scientific
ties, educational exchanges and people-to-people contacts.
Patil said that in Berne, she would be having a wide-
ranging discussions with President Micheline Calmy-Rey and
other members of the Federal Council of Switzerland.
She recalled that during Calmy-Rey's visit to India in
2007, the two sides had discussed the need to elevate the
bilateral ties to the level of a Privileged Partnership.
"This would, in our view, require a diversification and
enhancement of cooperation and closer understanding on
bilateral and multi-lateral issues of common concern. We would
be discussing on how to achieve this," Patil said.
Patil said Switzerland and Austria are active members of
several international organisations, many of which have bases
in these countries. "I would be exchanging views with my
counterparts in both countries on international issues such as
international terrorism, climate change and reforms of the
United Nations," she said.
President said between 2006 and 2010, two-way trade with
Switzerland has risen by approximately 36 per cent and touched
USD 3.7 billion.
"Switzerland has emerged as one of the top investors in
India as also a source of advanced technology in diverse
fields such as engineering, precision instruments, textile
production.
"We would like to see more Swiss firms using India as a
manufacturing base for exports to third countries as well as
an R&D centre. There is also an excellent potential for
harnessing Swiss technologies to meet our developmental needs
in areas such as renewable energy, energy efficiency and
vocational education," she said.
President Patil said her visit to Austria aims at
signalling the importance India attaches to this bilateral
relationship, and to further expand and strengthen ties.
She said India's trade with Austria has increased by 55
per cent between 2006 and 2010 and touched USD 1.1 billion in
2010.
"Since the first Indo-Austrian industrial collaboration
was signed in 1956, there has been significant cooperation
through a large number of collaborations, know-how transfers
and joint ventures in multiple areas, including in our
infrastructure sector such as railways, roads and steel
production.
"We hope to enhance our economic partnership and
cooperation in other areas... An Indian business delegation
will be in Geneva and Vienna during my visit, to explore trade
and investment opportunities," Patil said.
She said it is important to promote people-to-people
exchanges with Austria and Switzerland, where there is a
strong interest in Indian culture and languages.
In Austria, Sanskrit began to be taught at the University
of Vienna in 1845, which transformed itself into a popular
separate Institute for South Asian, Tibetan and Buddhist
Studies.
In Switzerland, Sanskrit courses began in 1903 in the
University of Lausanne and today there are thriving Centres
for Indian Studies in the Universities of Lausanne as well as
Zurich.
She said Indian films are quite well-known in both
countries and along with the numerous events focusing on India
this year, would have given the Swiss and the Austrian
citizens a good glimpse of India.
"We would like to see more tourists visiting India from
both these countries," Patil said.