New Delhi: Relating to the issue of Black Money a Global pact on exchange of information on Financial Accounts is signed by India, in pursuance to which the country can receive the most relevant information about financial accounts held at almost every countries throughout the world and also those which are held by the offshore financial centres.
Looking to the initiative from the side of Government, it can be expected that in relation to the issue of black money, now the Government will be able to receive information and the same will help in preventing international tax evasion and also will be instrumental for receiving information by Indian tax authorities on the assets held at abroad by Indian Citizens.
Now, the country has joined the ‘Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information’ as it was signed by it on this Wednesday in Paris. Beside India, certain other countries like Australia, Costa Rica, Canada, New Zealand and Indonesia has also signed the present document, as stated by the Finance Ministry.
It was informed through the Statements from Finance Ministry, Government of India that, Mr. Mohan Kumar, being Indian Ambassador at France country has signed the declaration as to comply the provisions of the said Pact.
Further, it was specifically mentioned by the Finance Ministry in its statement that, now the Government will be helped to curb evasion of taxes and also the present actions will deal with the Black Money problem too.
However, it was observed in the last year that, India had skipped signing of concerned pact even after that the Top Court in India had required the Government to make public information which was received by it under treaties.
Now, the Government has signed the international pact is only because, the Special Investigation Team headed by Justice, M. B. Shah has secured a go-ahead on issue of Black Money.
Now, the present international pact which India and other countries have signed is providing for newest Global standards of wide scope and also the same is imposing obligation on the member states to exchange a wide range of information on financial accounts.
By India signing the pact, there are total about 60 number of countries and jurisdictions agreeing to exchange information also more than 90 countries made commitments to exchange information by 2017 onwards.
by Faim Khalilkhan Pathan.