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India, Brazil, SA to cooperate in tax matters
November, 24th 2006

Close on the heels of inking an agreement to promote trade ties, the trio of India, Brazil and South Africa have agreed to deepen cooperation in tax and customs matters. They will work out a trilateral framework for agreement on cooperation in revenue administration matters.

Under the IBSA mechanism, the three countries will endeavour to curb abusive use of tax avoidance transactions, arrangements, shelters and schemes. They would also exchange information on customs and tax modernisation. The mechanism will also use the exchange of in-formation provisions in the bilateral double taxation agreement.

Revenue Secretary K M Chandrashekhar met his counterparts from South Africa and Brazil in Pretoria from November 20-21. To promote closer cooperation in both tax and customs matters and contribute to the India-Brazil-South Africa dialogue forum, the three heads of revenue administrations agreed to increase and formalise cooperation.

The three countries will work towards the development of electronic connectivity and the real-time exchange of information. They would also cooperate in combating commercial fraud, smuggling, drug trafficking and other illicit activities, an official statement said.

It was noted that increased economic activities between these countries and the growing trade and investment relationships necessitated closer customs and tax cooperation. The Indian, Brazilian and South African revenue administrations have already been cooperating in various global customs and tax organisations and this meeting pro-vided the opportunity to explore areas for trilateral cooperation.

 
 
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