Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: articles on VAT and GST in India :: VAT RATES :: cpt :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT Audit
Indirect Tax »
 Income Tax dept to intensify anti-black money operations
 Applicability of TDS provisions of section 194-I of the Income-tax Act, 1961 on lump sum lease premium paid for acquisition of long term lease-regarding
 CBDT seeks monthly data of disposed I-T appeals
 Further indirect tax may be levied in 2017
 India has to make its own tax law
 Centre warns against criticism of GST network
 Indirect tax collection jumps 26% in April-September, direct tax 9%
 Indirect Tax collections up
 Thank you note from income tax department
 Tax dept scanning IDS disclosures filed through post
 Poor management cause of financial pressure on Centre

The tax-information exchange conundrum
November, 15th 2013

It is not uncommon to hear the phrase ‘information overload’ a lot these days. We live in a densely connected world with every nook and corner saturated with information. With the advent of the internet, boundaries of nationalities and cultures are increasingly getting blurred, bringing people from different parts of the world closer.
The same cannot be said for governments, however. Faced with a global slowdown leading to high fiscal deficits on account of foregone tax revenues, countries are increasingly directing their efforts towards extracting information regarding tax foregone on account of beneficial provisions being exploited in tax havens. Information is also crucial as corporations increasingly shift to low tax jurisdictions and tax havens.

A meeting of the G-8 countries hopes to give further momentum to these efforts. Representatives from Germany, France, Britain, Italy and Spain recently convened to discuss and develop mechanisms to clamp down on tax evaders and tax havens by ensuring seamless information exchange. Countries such as Jersey and Cayman Islands, which have many shell corporations, agreed to sign a multi-lateral convention on information-swapping.

India is not far behind—the current government approached various jurisdictions, including Mauritius, for data on offshore bank accounts of certain Indian entities, motivated by the issue taking the spotlight in the run up to the general elections in 2009. The efforts are not limited to purely obtaining information. Indian tax authorities now have provisions in the income tax legislation and double taxation treaties which disincentivise trade and transactions with identified tax havens.

The concept of ‘notified jurisdictions’ legislated vide the Finance Act, 2011, is a step in this direction. The introduction of Section 94A ensures that certain countries which do not effectively exchange information may be notified by the government. As a consequence of the notification, transactions with such territories shall attract increased scrutiny and higher rates of withholding, among other restrictions.

Current Position
The legislative intent behind the introduction of Section 94A is to mandate rigorous documentation on the part of the Indian resident undertaking transactions with entities in the notified territory, allowing Indian tax authorities to scrutinise such transactions in depth.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions