Tax amnesty for offshore accounts won't work: Rudolf Elmer

[JohnLocke]

The Swiss Bankers Association has rubbished his recent "revelations" about black money, but former Swiss banker and whistleblower Rudolf Elmer, who is just out of prison, says he is doing the right thing. The offshore banking industry is responsible for many of the world's biggest problems, the former employee of the powerful Swiss bank, Julius Baer, tells Ullekh NP in an interview. Excerpts:
What do you think of India's "amnesty plan" to net black money?


There were similar amnesty plans in Europe, but those did not work. I am not an admirer of amnesty plans. It is crucial that tax evaders, if caught, face tough sentences such as long imprisonment. What is more important is stringent action against secrecy jurisdictions, something the US is planning to try on Swiss banks. Indian tax authorities should join hands with overseas counterparts in sharing information.


What are the legal hurdles of being an antiblack money whistleblower in Switzerland?


There are no legal hurdles, but I have endured a lot of retaliation. My opponents spread rumours that I am a criminal, a thief, a mentally sick person, etc. I was isolated, but I know I did the right thing.


Do you have support from any section of politicians in Switzerland?


I am the enemy No.1 of the state of Switzerland... You need to understand that Swiss Bank secrecy has become a kind of state policy. This also applies to the other known 80 secrecy jurisdictions in this world.


In your years at Julius Baer, when did you first think that you should fight black money?


I worked for 15 years for Julius Baer and at the beginning I was naive...My employer was using me in order to run business through the Cayman office. We are not only talking about black money, it was worse! Offshore banking industry, to a big extent, is responsible for global poverty.


How soon do you expect India to go the US way?


I heard that the German tax authorities have cooperated with India and handed over some lists [of tax evaders]. This is a great move in the right direction. However, it took the US several years to collect evidence about criminal behaviour of bankers and clients and evidence is needed to make the case. I hope India is committed to do so.

So what will be the next move? What do you think of India's "amnesty plan" to net black money?