Twitter
Advertisement

Talks with 16 nations concluded to check flow of black money

The government has concluded talks with 16 countries, including Saint Kitts, Cayman Islands, Bahamas, Bermuda and British Virgin Islands, to keep a tab on flow of black money.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The government has concluded talks with 16 countries, including Saint Kitts, Cayman Islands, Bahamas, Bermuda and British Virgin Islands, to keep a tab on flow of black money.

In a reply to an RTI query, the government, however, did not reveal the information it has obtained regarding Indians having illegal accounts in foreign banks, citing confidential clause.

"The Government of India has completed negotiations of 16 new Tax Information Exchange Agreements (TIEAs) with Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, Saint Kitts and Nevis, Argentina, Costa Rica, Guernsey, Macau, Liberia, Marshall Islands, Congo and Gibraltar," the Finance Ministry said in a reply to an RTI query.

Nine of these agreements have been approved by the Cabinet, it added.

According to the reply, TIEAs with Bahamas, Bermuda, British Virgin Islands and Isle of Man have been signed and have come into force.

One such agreement with Cayman Islands is signed and is all set to become a legal framework to check illegal wealth.

The government, however, denied information received from foreign banks citing confidentiality clauses.

"Information regarding Indians having illegal accounts in foreign banks have been obtained from foreign authorities under the prevailing double taxation avoidance agreements which are confidential as per the treaty provisions. Therefore details received by the division cannot be provided...," it said.

India has initiated a process to negotiate with 74 countries to broaden the scope of the Article concerning exchange of information to specifically include banking information and information which has no domestic interest.

"Negotiations/renegotiations of Double Tax Avoidance Agreements (DTAA) with 37 countries were completed. DTAAs with Switzerland (amendment), Norway (revised), Mozambique (new), Columbia (new), Ethiopia (new), Singapore (amended) and Tanzania (revised) have already been signed," the Ministry said in reply to a Right to Information (RTI)application filed by one Ashwini Shrivastava.

It said the amendments to tax treaty with Switzerland has also been signed and approved by the Swiss Parliament.

"It will come into force when Switzerland completes its internal process after legislative approval. Upon coming into force, it will allow India to obtain banking information (as well as information without domestic interest) from Switzerland in specific cases for a period starting from April 1, 2011," the reply said.

According to the Finance Ministry, the government is working on various measures which include incorporation of a new legislation in the Direct Taxes Code Bill to unearth black money, creation of the Directorate of Income Tax (Criminal Investigation), and increase in manpower for the Foreign Tax Division, which deals with the work for exchange of information.

"As a part of capacity building and skill development, 51 senior officers were sent abroad for specialised training in the field of international taxation and transfer pricing in 2010-11," the reply said.

It said the government has set up income tax overseas units in two Indian missions abroad. "Eight more such units are being set up in the current financial year to strengthen information exchange mechanism," it replied.

The government has also set up a committee under Chairman of the Central Board of Direct Taxes (CBDT) to examine existing legal and administrative framework to deal with the menace of generation of black money through illegal means among others.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement