INDIA SIGNS TAX CONVENTION
07 Nov, 2011
All G20 members now signatories of global tax cooperation convention, as India signs
India has signed the Convention on Mutual Administrative Assistance in Tax Matters, which was jointly developed by the Council of Europe and the Organisation for Economic Co-operation and Development (OECD).
R. Gopalan, Secretary, Department of Economic Affairs (pictured), who signed on behalf of the Government, said: “Tax evasion and illicit flows are a serious problem and over the last two years, in order to check this trend, India has negotiated 19 new double taxation avoidance agreements and 17 new tax information exchange agreements.”
All members of the G20 have now become signatories to the Convention, which will have to be ratified by the Indian Parliament to become law.
In Spring 2009, the G20 Summit called for moves to ‘make it easier for developing countries to secure the benefits of the new cooperative tax environment, including a multilateral approach for the exchange of information’. Following this, the OECD and the Council of Europe amended the multilateral Convention on Mutual Administrative Assistance in Tax Matters, bringing it in line with the international standard on exchange of information for tax purposes and opening it up to all countries.
Speaking from the G20 summit in Cannes, France, OECD Secretary-General Angel Gurría said: “Today we have taken a major step forward to improve global tax cooperation. The OECD looks forward to continuing to work with the G20 and other countries to maximise the benefits from this powerful multilateral instrument. Tax co-operation and compliance are of crucial importance for all countries and citizens — and not only in times of a tight fiscal and budgetary environment.”