Stepping up its fight against blackmoney generation, the government on Thursday approved signing and ratification of an agreement between India and Seychelles for exchange of information on taxes.
The agreement will stimulate information exchange between India and Seychelles for tax purposes, which will help curb tax evasion and avoidance, Communications and Information Technology Minister Ravi Shankar Prasad said after the Cabinet meeting chaired by Prime Minister Narendra Modi.
“This is part of the ongoing initiative of the government of India to unearth black money,” he said.
In this regard, he said the government has taken various initiatives, including signing of FATCA (Foreign Account Tax Compliance Act) with the USA and enactment of black money law.
“After America, we are also planning to sign such agreements with other countries,” he said.
He also said the G-20 agreement to share real-time exchange of information by 2017 has been an outcome of the initiative of Prime Minister Narendra Modi.
Elaborating on the agreement with Seychelles, Prasad said “any abuse of land of India or Seychelles for money transaction in an unauthorized manner regardless of the fact that he is resident or not is amenable to prosecution”.
All types of taxes imposed by India or Seychelles irrespective of the manner in which they are levied are covered, the minister said.
The agreement will enable competent authorities of India and Seychelles to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of domestic laws of the two countries concerning taxes.