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India and Isle of Man have signed a tax information exchange agreement (TIEA) in London on Friday last.
This is the second TIEA being signed by India. The first TIEA was signed by India with Bermuda in New Delhi in October 2010.
The TIEA with Isle of Man was signed by Mr Nalin Surie, High Commissioner of India to the UK, and Ms Anne Craine, Minister of the Treasury, Isle of Man.
Besides a specific provision for providing banking and ownership information, the TIEA also allows exchange of past information in criminal tax matters.
The TIEA with Isle of Man also stipulates that information must be “foreseeably” relevant to the administration and enforcement of the domestic laws of the contracting parties concerning taxes covered by the agreement. Also, the requesting State has to provide some minimum details about the information requested in order to justify the “foreseeably” relevance criteria.
Information will be treated as secret and can be disclosed to only specified person or authorities who are tax authorities or the authorities concerned with the determination of tax appeal. There is also a specific provision that the requested party will provide upon request the information even though that party may not need such information for its own tax purposes, an official release said.
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. An important objective of the TIEA 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.
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