New Delhi, June 27: The government has approached 65 countries,  including Switzerland and tax haven nations, to revise a tax information  exchange treaty with them to include fresh details while sharing  bank-related information of individuals and other entities. The Finance Ministry has initiated the move under the existing  Double Taxation Avoidance Agreement (DTAA) as Indian tax authorities  are looking to curb illegal stashing of money by individuals and  others in foreign shores.
 According to top sources in the Foreign Taxation division of  the Finance Ministry, the government is revising DTAAs to "specifically"  provide for information on bank-related information, especially in  certain "specific cases".
 "The bank-related data will enable Indian authorities to check  tax evasion and illegal stashing of money in foreign shores by individuals  and some other entities. The details on bank-related information  is not properly addressed in the present DTAA," a senior Finance  Ministry officer said. Under the present tax avoidance treaty, the "Union government  may enter into an agreement with the government of any country outside  India for exchange of information for prevention of evasion or avoidance  of income-tax chargeable under this Act (Income Tax Act) or under  the corresponding law in force in that country, or investigation  of cases of such evasion or avoidance, or for recovery of income-tax  under this Act and under the corresponding law in force in that country." Government is also in the process of setting up overseas tax  units in countries like France, UAE, USA, Britain, Netherlands, Japan,  Cyprus and Germany. Two such units in Mauritius and Singapore have  already become operational. Currently, Government has DTAA agreement with 65 countries.

Lastupdate on : Sun, 27 Jun 2010 21:30:00 Makkah time
Lastupdate on : Sun, 27 Jun 2010 18:30:00 GMT
Lastupdate on : Mon, 28 Jun 2010 00:00:00 IST