India has signed a tax information exchange agreement (TIEA) with Liberia. This is the sixth TIEA signed by India over the last twelve months. Four have entered into force so far.
The objective is to promote international cooperation in tax matters through exchange of information. The nature of tax-related information that could be shared under a TIEA varies from agreement to agreement.
Other agreements signed are with the Bahamas, Bermuda, British Virgin Islands, Isle of Man and Cayman Islands. Of the six pacts signed by India, the TIEAs with Bahamas, Bermuda, Isle of Man and British Virgin Islands have entered into force, Mr M.C. Joshi, the Central Board of Direct Taxes (CBDT) Chairman said here on Friday at an international tax conference, organised by Assocham.
Mr Joshi highlighted that India has already completed negotiations for sixteen new TIEAs with Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, St Kitts & Nevis, Argentina, Costa Rica, Guernsey, Macau, Liberia, Marshall Islands, Congo and Gibraltar.
A forum to address
The concept of TIEA is a result of the work undertaken by the Paris-based Organisation for Economic Cooperation and Development to address harmful tax practices.
India had last signed a TIEA in March this year with Cayman Islands. At the instance of the Finance Minister, the G-20 Grouping had made mandatory the signing of TIEAs in case any country demands this instrument with low or no tax jurisdictions.
The Centre had identified 22 countries/ jurisdictions with which TIEAs could be signed. Of this, India has completed negotiations with 16 countries/ jurisdictions.