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Current Affairs

India notifies tax info exchange pact with Marshall Islands

Date: 07 June 2019 Tags: Miscellaneous

India has notified a tax information exchange agreement (TIEA) with the Marshall Islands. It will enable bilateral sharing of banking information and allow officials of one country to undertake tax examinations in the other. TIEA between India and Marshall Islands for exchange of information with respect to taxes was signed in 2016 at Majuro, the Capital of the Marshall Islands. It was notified by India on May 21, 2019.

Significance

It will enhance mutual cooperation between India and the Marshall Islands. It will provide effective framework for exchange of information on tax matters which will help curb tax evasion and tax avoidance.

Tax information exchange agreement (TIEA)

It is based on international standards of tax transparency and exchange of information. It enables sharing of information on request. It enables bilateral sharing of information, including banking and ownership information for tax purposes. It also allows officials of one country to undertake tax examinations in the other.