Cabinet nod for pact with Saint Vincent and the Grenadines for sharing of tax information
This will strengthen India's fight against tax evasion and tax avoidance practices
The Union Cabinet chaired by Prime Minister Narendra Modi has approved an agreement between India and Saint Vincent and the Grenadines for the Exchange of Information and Assistance in Collection with respect to Taxes.
This is a new agreement between India and Saint Vincent and the Grenadines, said a release of the Union Cabinet on Wednesday.
It mainly proposes to facilitate exchange of information between the two countries including sharing of information held by the banks and other financial institutions encompassing the information regarding the legal and beneficial ownership, it added.
According to the Union Cabinet release, the agreement will also facilitate the assistance in collection of the tax claims between the two countries.
Thus, it will strengthen India's commitment to fight offshore tax evasion and tax avoidance practices leading to generation of unaccounted black money, it added.
It contains tax examination abroad provisions which provide that a country may allow the representatives of the other country to enter its territory (to the extent permitted under its domestic laws) to interview individuals and examine records for tax purposes, stated the release.
Prior to Wednesday, there was no such agreement with Saint Vincent and the Grenadines in the past and India was negotiating this agreement since a long time, it mentioned. Finally, Saint Vincent and the Grenadines agreed to conclude this agreement, the release said.