It is the exchange of information between countries without having to request it. It aims to reduce global tax evasion. 

• It is to be carried out under Common Reporting Standard (CRS).

• Under this mechanism, India will start receiving information on all financial accounts held by Indian residents in Switzerland, for the year 2018.

Common Reporting Standard (CRS) is agreed global standard for it which has been approved by Organisation for Economic Co-operation and Development (OECD) in 2014.

• It is global reporting standard for such exchange of information, which takes care of aspects such as confidentiality rules and data safeguards.

India-Switzerland AEOI: Both countries had signed joint declaration on the introduction of the AEOI in tax matters on a reciprocal basis in November 2016. Under it-

• Both countries intend to start collecting data in accordance with global AEOI standard in 2018 and to exchange it from 2019 onwards.
• Both jurisdictions will inform each other of any relevant developments in respect to implementation of OECD CRS in their respective domestic laws.
• Each jurisdiction will confirm that it has informed other jurisdiction about the modalities made available to persons making voluntary disclosure of their financial assets for smooth transition to system of automatic exchange of information.