Press Trust of India / New Delhi Jun 24, 2011, 18:25 IST
India and Singapore today amended their Double Taxation Avoidance Agreement (DTAA), a move that will help both the countries exchange banking and tax related information more effectively.
"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," the Central Board of Direct Taxex (CBDT) said.
The two nations have adopted internationally agreed standard for exchange of information in tax matters.
This includes the principles incorporated in the 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 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.
India has negotiated and renegotiated DTAAs and finalised Tax Information Exchange Agreements (TIEA) with 44 countries to strengthen the exchange of information relating to tax evasion, money laundering and other criminal activities.
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