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TAX DATA TRACKING ON CARDS
September, 01st 2009

TURNING THE HEAT ON tax havens used to route investments into the country, India is now examining a plan that seeks to create a specialised information tracking system on the lines of AUSTRAC, Australias antimoney laundering agency, reports Deepshikha Sikarwar from New Delhi.

The system will collect data related to the use of tax havens and abuse of double taxation avoidance agreements by overseas investors.

It will keep tabs on Indian investments outside to ensure tax havens are not being used to bring money back into India. This mechanism, called roundtripping, is alleged to be used by some entities to avoid tax on income from their investments in India.

 
 
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