With an aim to curb tax evasion and avoidance, Union Cabinet chaired by Prime Minister Narendra Modi approved signing of agreement with Seychelles for exchange of information with respect to taxes. This agreement will enable the authorities of both the countries to provide assistance through the exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of two countries concerning taxes.
The agreement provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on procedures and will not have any financial implications. However, as per Article 9 of the agreement, only in the event of extraordinary costs exceeding $500, the Government of India will bear the same. Further, the information received under the agreement will be confidential and will be disclosed only to the persons or authorities concerned with assessment, collection, enforcement, prosecution or determination of appeals, in relation to taxes covered under the agreement.
Earlier, India has signed similar bilateral agreements for Exchange of Tax Information with Argentina, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Liechtenstein, Macao, Monaco and San Marino.