Cabinet okays agreement with St Vincent and The Grenadines for exchange of information in tax collection
New Delhi, June 24, 2021
The Union Cabinet has approved an agreement between India and Saint Vincent and The Grenadines for the Exchange of Information and Assistance in Collection concerning Taxes.
The agreement mainly proposes to facilitate the exchange of information between the two countries and to provide assistance to each other in the collection of tax claims, an official press release said.
It also contains tax examination abroad provisions that provide that a country may allow the representatives of the other country to enter its territory (to the extent permitted under its domestic laws) to interview individuals and examine records for tax purposes.
The agreement will help in facilitating the exchange of information between the two countries including sharing of information held by the banks and other financial institutions encompassing the information regarding the legal and beneficial ownership. It will also facilitate the assistance in the collection of the tax claims between the two countries, the release said.
"Thus, it will strengthen India's commitment to fight offshore tax evasion and tax avoidance practices leading to the generation of unaccounted black money.
"There was no such agreement with Saint Vincent and The Grenadines in the past and India was negotiating this agreement for a long time. Finally, Saint Vincent and The Grenadines agreed to conclude this agreement will promote tax cooperation between the two countries through the exchange of information and assistance in the collection of outstanding tax claims between the two countries," the release added.