New Delhi, June 6 (IANS) The government has notified an agreement with Marshall Islands, a country comprising a chain of volcanic islands and coral atolls in the Pacific Ocean, for the exchange of banking and company information for tax purposes. It will help curb tax evasion and tax avoidance.
Called tax information exchange agreement (TIEA), it will allow mutual co-operation between the two countries by providing an effective framework for exchange of information in tax matters.
The agreement (India-Marshall Islands TIEA) between the Indian government and the government of Marshall Islands was signed on March 18, 2016 at Majuro, the Republic of the Marshall Islands.
“The India-Marshall Islands TIEA has been notified in the Gazette of India (Extraordinary) on 21st May, 2019,” a Finance Ministry statement said.
The bilateral agreement is based on international standards of tax transparency and exchange of information and enables sharing of information on request. The agreement also provides for representatives of one country to undertake tax examinations in the other country.