In first half of 2012, India has signed the Convention On Mutual Administrative Assistance In Tax Matters. It was up till now for the members of OECD and Council of Europe. It was updated in 2010 and was made open for all countries for better co-operation between the countries in the assessment and collection of taxes, with a view to combating tax avoidance and evasion.
- The present signatories to the amended Convention are following countries: Argentina, Australia, Belgium, Brazil, Canada, Denmark, Finland, France, Georgia, Germany, Iceland, India, Indonesia, Ireland, Italy, Japan, Korea, Mexico, Moldova, Netherlands, Norway, Poland, Portugal, Russia, Slovenia, South Africa, Spain, Sweden, Turkey, Ukraine, the United Kingdom, and the United States. 12 of them have ratified it already.
Benefits:
- A wider network of countries co-operating in exchange of information and assistance in tax collection.
- Based upon international standard of transparency and exchange of information.
- Works as a single legal basis for multi-country cooperation as against the Double Taxation Avoidance Agreements and Taxation Information Exchange Agreements which are bilateral.
- It provides extensive forms of cooperation among the signatories on all taxes. –
- Facilitates the exchange of information and also provides for assistance in the recovery of taxes.