India, Brunei sign pact to exchange information on tax, banking matters

India and Brunei signed an agreement on Thursday for exchange of information in tax matters which will help curb tax evasion and tax avoidance.

The pact enables exchange of information, including banking and ownership information, between the two countries for tax purposes. It is based on international standards of tax transparency.

The Tax Information and Exchange Agreement (TIEA) was signed by Pramod Chandra Mody, Chairman of the Central Board of Direct Taxes, and Dato Paduka Haji Sidek Ali, Brunei's High Commissioner to India.

The agreement also provides for mutual assistance in collection of tax revenue claims between both countries, according to an official statement.

Brunei and India share a fair degree of commonality in their perceptions on major international issues.

The southeast Asian nation has been supportive of India's Act East Policy and expansion and deepening of cooperation with the 10-nation Association of South East Asian Nations (ASEAN) regional bloc.