The Cabinet on Wednesday gave approval for signing and ratification of an agreement between India and Samoa for exchange of information to curb tax evasion. The agreement enables India and Samoa to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the two countries concerning taxes, said an official statement after the Cabinet meeting chaired by Prime Minister Narendra Modi.
It would enter into force on the date of notification of completion of the procedures required by the respective laws of the two countries. Negotiations for entering into an agreement for exchange of information with respect to taxes were finalised between India and Samoa in June, 2016 and both countries have agreed on the text of the agreement. “The agreement will stimulate the flow of exchange of information between India and Samoa for tax purposes which will help curb tax evasion and tax avoidance,” it said. It further said at present there is no financial implications.
However, in the event of extraordinary costs exceeding $ 500, the same will be borne by India. India has similar provisions in tax information exchange agreements with other countries. The information received under the pact will be treated as confidential and could be disclosed only to persons or authorities concerned with assessment, collection, enforcement, prosecution or determination of appeals in relation to taxes covered under the pact.