It is very hot topic during elections in India and Indian government has acted fast to remove this topic from opposition list. Indian government has signed bilateral agreement with Swiss government for sharing information about banking transactions. (Which should be tax evasion transaction)
Before, concluding anything, we should understand some basic issues.
Why everyone is relying on Swiss Banks ?
It is big myth that it is only place to hide money. There are other places also to do the same. But, it was easiest target for USA to force their own law which bring the matter in lime light. IBL (International Bank of Lebanon) is one of the other banks who provide secured bank account. USA is also aware that Saddam Hussain, Osama Bin Laden and other terrorist groups are operating with these account. But USA is unable to do anything with it. So, it has become heaven for all tax evasions in USA. As per sources, money is remitted in country in containers.
These banks are secured because once you have completed account opening formalities, everything is available online. Even, if you visit branch, they will provide you system to complete your transaction.
No human interaction in whole banking process.
Procedure of account opening
It is the easiest procedure to open bank account. You should have one valid passport copy only. They do not even bother to check the authenticity of passport. Assume, if I have to open bank account for tax evasion. I will get one fake passport in the name of my servant in just INR 1000.00. Now I can go to any branch and open an account. How simple is it.
*Do not forget to carry $10,000.00
Operation of account
You will be provided one welcome kit, which will carry lot of documents, one access card and one Electric Card Holder . They will request you to Swap access card in their machine for first time and generate 4 digit pin for yourself. Now, it was last visit to branch and you will not required to visit branch again in your life and hardly require to call on call centre number.
Magic of Electric Card Holder
It is new thing for users. To make any login, you have to go bank website, then enter your contact no. It will generate input no. You have to insert access card in card holder, enter pin which you have generated (Can be changed any time). Then insert this input no. Holder will provide you eight alphanumeric code, enter this code to bank website.
Now normal banking can be done. Isn’t it too much secured ?
Recording of transactions
All transactions are recorded in numeric value. Only user is able to see text of transaction, not even bank employees. User can open n number of sub accounts. It creates more problem for anyone to watch transaction.
Problems for Indian Taxation Authorities.
If all IT Deptt will get information of all Indian passport holder. They will face no. of following problems
1. Most of declared Indians would not be Indian, as any French national can spend INR 10,000.00 and can get fake Indian passport. How will they segregate this ?
2. Most of persons will not have provided their original passport, how will IT deptt find those persons?
3. It is agreement for the purpose of get rid off tax evasion, which means that IT department have to provide transaction details with customer no. and enough evidence to prove tax evasion transaction. I suppose whole IT deptt and CBI will require at least 100 years to provide these information about top 10 tax evasion cases.
4. What is benefit of all these things? As government will charge high rate of tax and imprisonment also. If, I will be caught by deptt. I will forget that money. So, no further transaction and government of Swiss will enjoy the money. In this case, I will be saved from government proceedings and imprisonment by both countries.
Conclusion
If, we are unable to secure our money. No one can help us. All these measures are like fucking for virginity. More we force Swiss government, they will find new ways of securing their banking system. We are requesting tiger to protect the calf. Let us see how many days it will be protected.