Cabinet approves agreement between India and Samoa for exchange of information with respect to Taxes

The Dollar Business Bureau

The Union Cabinet on Wednesday under the Chairmanship of Narendra Modi has given its approval for an agreement between India and Samoa for exchange of information related to taxes.

As per the official statement released by the Cabinet, “the agreement will stimulate the flow of exchange of information between India and Samoa for tax purposes which will help curb tax evasion and tax avoidance. There is no financial implications at present. Only in the event of extraordinary costs exceeding $500, the same will be borne by India. India has similar provisions in other such tax information exchange agreement.”

“The agreement enables competent authorities of both the countries to provide assistance through exchange of information that is foreseeably relevant with regard to taxes. The information received or given will be treated as confidential and only disclosed to persons or authorities (including courts or administrative bodies) related to taxes. The information may also be disclosed to persons or entity or authority or jurisdiction with the prior written consent of the information sending country.”

“The Agreement will enter into force on the date of notification of completion of the procedures required by the respective laws of the two countries for entry into force of the Agreement.”

The Central Government is authorized under section 90 of the Income Tax Act, 1961 to enter into an Agreement with a foreign country or specified territory for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under the Income-tax Act, 1961. Negotiations for entering into an Agreement for the exchange of information with respect to Taxes were finalized between India and Samoa in June, 2016 and both countries have agreed on the text of the Agreement.