The need to exchange
relevant information on a bulk basis, freely and automatically, to address the
problem of offshore tax evasion and avoidance has been acknowledged
internationally.
India, as a matter of policy and as a non-OECD G20 member and representative, is fully supportive of the various initiatives on tax transparency, including Automatic Exchange of Information (AEOI). In furtherance of this commitment, India has joined the Multilateral Competent Authority Agreement (MCAA) on AEOI on 3 June 2015 taking the total number of countries/jurisdictions agreeing to exchange information automatically in accordance with MCAA to 61. This would enable India to meet its commitment to be an “early adopter" committed to exchange information automatically by the year 2017.
Recently (in May 2015), the Indian administrative authority released a revised edition of the Indian manual on EOI[8]. This document provides detailed guidelines to Indian tax officers for making specific requests for EOI under various legal instruments and also contains guidelines to be followed in case a request is received [9]. It also gives an overview of the recent international developments in tax transparency including the global adoption of the standards on AEOI.
AEOI based on CRS, when fully implemented, would enable India to receive information from almost every country in the world including offshore financial centers. Hence it would be instrumental in getting information about assets of Indians held abroad including through entities in which Indians are beneficial owners and thus aid in preventing international tax evasion and avoidance.
India, as a matter of policy and as a non-OECD G20 member and representative, is fully supportive of the various initiatives on tax transparency, including Automatic Exchange of Information (AEOI). In furtherance of this commitment, India has joined the Multilateral Competent Authority Agreement (MCAA) on AEOI on 3 June 2015 taking the total number of countries/jurisdictions agreeing to exchange information automatically in accordance with MCAA to 61. This would enable India to meet its commitment to be an “early adopter" committed to exchange information automatically by the year 2017.
Recently (in May 2015), the Indian administrative authority released a revised edition of the Indian manual on EOI[8]. This document provides detailed guidelines to Indian tax officers for making specific requests for EOI under various legal instruments and also contains guidelines to be followed in case a request is received [9]. It also gives an overview of the recent international developments in tax transparency including the global adoption of the standards on AEOI.
AEOI based on CRS, when fully implemented, would enable India to receive information from almost every country in the world including offshore financial centers. Hence it would be instrumental in getting information about assets of Indians held abroad including through entities in which Indians are beneficial owners and thus aid in preventing international tax evasion and avoidance.
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