Cabinet okays pact b/w India, Saint Vincent and the Grenadines for tax information exchange

New Delhi, Jun 23 (FN Agency) The Cabinet on Wednesday approved an agreement between the India and Caribbean country Saint Vincent and The Grenadines for the exchange of information and assistance in collection with respect to Taxes. The Cabinet, chaired by Prime Minister Narendra Modi, approved the agreement that also contains tax examination abroad provisions which provide that a country may allow the representatives of the other country to enter its territory (to the extent permitted under its domestic laws) to interview individuals and examine records for tax purposes.

It is a first such agreement aimed at facilitating the exchange of information between the two countries and to provide assistance to each other in collection of tax claims.It will also help in sharing of information held by the banks and other financial institutions encompassing the information regarding the legal and beneficial ownership and will strengthen India’s commitment to fight offshore tax evasion and tax avoidance practices leading to generation of unaccounted black money.