Tax information exchange pact signed with Liberia

In its continuing quest to draw information on concealed incomes stashed abroad in tax havens, India has signed a tax information exchange agreement (TIEA) with Liberia.

This is the sixth TIEA signed by India over the last 12 months.

The jurisdictions with which India has signed the TIEAs are Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands and Liberia.

Of the six pacts signed by India, the TIEAs with Bahamas, Bermuda, Isle of Man and British Virgin Islands have entered into force, the Central Board of Direct Taxes (CBDT) Chairman, Mr M.C.Joshi, said here on Friday at an international tax conference, organised by Assocham.

Mr Joshi highlighted that India has already completed negotiations for 16 new TIEAs with Bahamas, Bermuda, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Monaco, St Kitts & Nevis, Argentina, Costa Rica, Guernsey, Macau, Liberia, Marshall Islands, Congo and Gibraltar.

The concept of TIEA is a result of the work undertaken by Paris-based Organisation for Economic Cooperation and Development to address harmful tax practices.

An objective of 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.

India had last signed a TIEA in March this year with Cayman Islands. At the instance of the Finance Minister, the G-20 Grouping had made mandatory the signing of TIEAs in case any country demands this instrument with low or no tax jurisdictions.

The Centre had identified 22 countries/jurisdictions with which TIEAs could be signed. Of this, India has completed negotiations with 16 countries/jurisdictions.

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