Wednesday, 12 November 2014

India, St Kitts & Nevis deal aims at Black money

In order to fulfil Prime Minister Narendra Modi’s assurances to bring back black money stashed abroad, India has entered into an information exchange pact with Caribbean islands of Saint Kitts and Nevis, perceived as a safe haven for offshore funds.

India's Permanent Representative to the UN Asoke Kumar Mukerji, and his counterpart from Saint Kitts and Nevis Ambassador Delano Frank Bart signed the agreement modelled on other tax information exchange agreements and would cover taxes imposed by both the countries.

It would include information relevant to administration of domestic tax laws of each country in terms of assessment, tax claims and prosecution. The agreement would also encompass information on banking details, ownership information of companies and information relevant to administration of domestic laws and taxes in both the countries.

India has also signed information exchange pacts on tax matters with a number of such locations including Bahamas, Bermuda, Liechtenstein, Gibraltar, British Virgin Islands, Isle of Man, Cayman Islands, Jersey, Macau, Liberia, Argentina, Guernsey and Monaco, among others.

A Special Investigation Team is currently looking into the black money issue, including the cases related to untaxed money stashed abroad by Indians.


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