Government has adopted a five-pronged strategy to tackle the sensitive issue of
Black Money –
the Global Crusade Against Black Money
of tax evasion and Exchange of Information have been incorporated in G 20
communiqué due to efforts of India in the recent ministerial meetings.
is playing a key role in Global Forum on Transfer Pricing and Exchange of
Information for tax purpose, as Vice Chairman of Peer Review Group.
FATF, Task Force on financial integrity and Economic Development and Eurasian
is participating in policy groups of OECD and UN on Exchange of Information,
International Taxation and Transfer Pricing as observer and member
Creating an Appropriate Legislative Framework
renegotiation with 75 countries to broaden the scope of
Article concerning Exchange of Information, and negotiation of DTAA and Tax
Information Exchange Agreement (TIEA) with new countries and 22 priority
countries/jurisdictions (no tax or low tax countries/jurisdictions)
has signed the OECD Multilateral Convention on Mutual Administrative Assistance
in Tax matters on 26 January, 2012. This Convention shall expand the scope of
India’s treaty network on tax matters.
legislation incorporating counter measure against non-cooperative jurisdiction (section 94 A in Finance Act 2011).
provisions of transfer pricing.
GAAR and reporting requirement of foreign asset in the Finance Bill, 2012.
of existing DTAA also contain article for assistance in collection of taxes
including taking measures of conservancy. Government is trying to have this
Article in other treaties as well.
Setting up Institutions to Deal with Illicit Funds
Ten Income Tax Overseas Units in various Indian
Missions abroad have been created and out of which two are already functional.
The remaining 8 Units shall be made operational very soon. Creation of more
ITOUs is under active consideration.
effectively handle the increase in tax information exchange and transfer
pricing issues, a dedicated Exchange of Information unit (EOI Unit) has been
Developing Systems for Implementation
policy for deployment of manpower to Directorate of Transfer Pricing and
International Taxation is implemented.
of FT&TR Division in CBDT has been doubled.
Imparting Skills to the Manpower for Effective Action
are being imparted specialized training abroad in field of International
Taxation and Transfer Pricing.
seminar on transfer pricing was held in India in month of June 2011.
India played a major role in G-20
discussions and highlighted the importance of automatic exchange of information
and importance of obtaining past banking information. India has also obtained
useful information about Indians having bank accounts in Swiss bank. This is
under investigation. Further a dedicated Exchange of Information Cell has been
created to handle the work related to exchange of information in line with
latest international standards. (PIB
*Director (M&C), PIB, with inputs
from the Ministry of Finance.