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India and Singapore on Friday signed a protocol, amending the existing double tax avoidance pact between the two countries for effective exchange of information on tax matters.
The protocol would pave the way for India to obtain banking information from Singapore for tax administration purposes, official sources said. India was till now not getting any kind of banking information from Singapore. Now, for tax purposes, both sides cannot deny or withhold information on the pretext of domestic tax interest requirement or bank secrecy.
The negotiations for entering into an amending protocol were completed in one round at Singapore. The protocol was signed by Mr Prakash Chandra, Chairman of the Central Board of Direct Taxes (CBDT), on behalf of the Indian Government, and Ms Karen Anne Tan Ping Ming, High Commissioner of Singapore to India, on behalf of Singapore here today.
Through this protocol, both India and Singapore have now 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'.
“The highlights of the protocol do suggest that the request for exchange of information would not be denied or refused on the premise that the matter to which it relates is being contested with tax authorities,” Mr Aseem Chawla, Partner, Amarchand & Mangaldas, told Business Line here.
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