Convention on Mutual Administrative Assistance in tax matters
ON 26th January 2012, India has signed a Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention was signed by Sanjay Kumar Mishra, Joint Secretary, Foreign Tax & Tax Research Division, CBDT in the presence of Deputy Secretary-General of OECD Mr. Rintaro Tamaki.
By signing the Convention, India and the other 31 signatories encourage more countries to join, sending a strong signal that countries are acting together to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place. Many more countries are expected to sign the Convention in future. This provides for a wider network of countries co-operating in Exchange of Information, Assistance in Tax Collection etc.
Legal Corner Icon — the image was hosted by the publisher and was not captured.This instrument is multilateral and a single legal basis for multi-country cooperation as against the DTAAs/TIEAs which are bilateral. It provides for an extensive network and there will be consistent application of provisions leaving limited scope for deviation.
The information received under the Convention can also be used for other purposes besides those related to tax co-operation, for example to counter money laundering with the approval of the supplying state.