INDIA has signed a Protocol, amending the
DTAA with Singapore for
effective exchange of information in tax matters today. The Protocol was
signed by CBDT Chairman
and the High
Commissioner of Singapore in Delhi today.
The negotiations for entering into an amending Protocol was completed in one
round at Singapore. Both India and Singapore have adopted internationally agreed
standard for exchange of information in tax matters. This standard includes
the principles incorporated in the new paragraphs 4 and 5 of OECD Model Article
on ‘Exchange of Information’ and requires exchange of information
on request in all tax matters for the administration and enforcement of domestic
tax law without regard to a domestic tax interest requirement or bank secrecy
for tax purposes.
In the aftermath of the global financial crisis, there is increased recognition
on part of Governments that improvements in exchange of information in tax matters
are a part of a broader agenda to improve transparency and global governance.
There is recognition that effective and comprehensive exchange of information
in tax matters is a vital part of the ongoing efforts of revenue authorities
to tackle international tax avoidance and evasion. Towards that end, India and
Singapore joined hands for effective exchange of information including banking
information.
This
amending Protocol will go a long way in strengthening relationship between India
and Singapore and facilitate mutual co-operation by effective exchange of information
in tax matters between two countries.
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