The Union Cabinet on Wednesday gave its nod for signing and ratification of tax information exchange agreement (TIEA) with Samoa, which is considered as the world’s most secretive tax haven.
Negotiations for entering into TIEA were finalised between India and Samoa in June 2016.
The agreement will stimulate the flow of exchange of information between India and Samoa for tax purposes which will help curb tax evasion and tax avoidance, an official release said.
The proposed TIEA also provides for mutual agreement procedure “for resolving any difference or for agreeing on procedures under the agreement’’.
The concept of TIEA is a result of the work undertaken by Paris-based Organisation for Economic Cooperation and Development to address harmful tax practices.
An objective of TIEA is to promote international co-operation in tax matters through exchange of information. The nature of this information varies from agreement to agreement.