India and Germany have agreed to continue to exchange tax-related information spontaneously on the basis of existing agreements and to explore possibilities of enhancing this arrangement.
At talks held in Berlin on August 17, the two sides also decided to begin negotiations as soon as possible towards a memorandum of understanding laying out the technical details of automatic information exchanges on financial accounts
Both countries are signatories to the Multilateral Competent Authority Agreement regarding automatic exchange of information on financial accounts.
The Indian delegation to the meeting was led by Revenue Secretary Shaktikanta Das while the German delegation was led by State Secretary Johannes Geismann.
During the meeting issues relating to exchange of tax related information, Base Erosion and Profit Shifting (BEPS), Double Taxation Avoidance Agreement (DTAA) negotiations and so on were discussed.
An official press release said the two countries agreed to resume negotiations on partial revision of the DTAA between them with a view to bring the provisions relating to exchange of information to international standards. It was also agreed that both sides would meet in New Delhi next month and strive to agree on a final version to ensure that it is signed soon.
An amending Protocol to the existing DTAA was last discussed by the Competent Authorities of the two countries in New Delhi in April, 2011, but further progress in the matter could not be made.
Last week's meeting between the Indian and German authorities was in furtherance of Government’s policy of pro-active engagement with other countries for exchange of information to counter the menace of tax evasion and stashing of black money abroad.
The outcome of the visit of this delegation represents an important landmark in enhancing cooperation and mutual assistance in tax matters between India and Germany, the release added.