Last week, the signing and ratification of an agreement between India and the Seychelles for exchanging information regarding taxes has been approved by the Union Cabinet, a crucial factor for enabling the government to fight ‘black money.’
The main purpose of the agreement is to stimulate the flow and exchange of information between the two countries for tax purposes. Tax evasion and avoidance will consequently be diminished since both governments will have more information. The agreement will enable the two parties to assist each other in the process of exchanging information, relevant to the administration and enforcement of domestic laws in the two countries.
However, the information that will be transferred under this agreement should be treated as confidential. Access to this information should be given only to persons and authorities that are concerned with the assessment, enforcement, prosecution, collection or determination of appeals, in relation to taxes covered under the agreement. Nonetheless, it is made clear that the information may be disclosed to any other jurisdiction if necessary, with the prior written consent of the country originally sending the information.
Negotiations were conducted in the Seychelles in June, for entering into an agreement for the exchange of information with respect to taxes and both countries have agreed on the text of the agreement.