India and Norway are all set to expand the scope of their double taxation avoidance agreement (DTAA) to facilitate greater information exchange on potential cases of tax evasion. After changes to the Indo-Swiss tax treaty this would be the second such treaty that would be reworked to ensure smooth flow of information on tax-related issues.
This amended tax treaty will allow the income tax authorities to access information on bank accounts of Indians easily, but only in specific cases. The tax treaty was amended on the lines of Parisbased Organisation for Economic Cooperation and Development (OECD) Model Tax Convention that does not provide for roving enquiry, or fishing expeditions as they are commonly called.
India is pursuing the issue of exchange of information with other countries and would also seek amendments in tax treaties with them . It signed its first tax information exchange agreement with Bermuda on Thursday. The move is in line with decision taken at the G-20 , which took up issue of tax havens and tax evasion. India and Norway are also looking to strengthen the fight against tax havens as part of the global task force on financial integrity and economic development, said a government official.
“We need more transparency in the global financial system. Tax havens have secrecy laws that prevent divulging details that need to be removed ,” said Ingrid Fiskaa, deputy minister, secretariat of the minister of international development who was in India to discuss cooperation on this count with her Indian counterparts.