India tweaks protocol to shed secrecy tag on info
To bolster capabilities of agencies probing foreign black money cases, India has begun the process of adding a new clause in its international tax treaties that will allow sharing of exchanged data between the multiple law enforcement departments, removing the rider of confidentiality that hampers the investigation.
The new clause is being inserted in the Double Taxation Avoidance Agreements (DTAA) so that the data once obtained by the Central Board of Direct Taxes (CBDT), the nodal department for tax information exchange, could be shared with sister agencies like CBI, Enforcement Directorate, the Directorate of Revenue Intelligence and others for probe under money laundering, corruption, customs and excise duty evasion and other laws.
A revised DTAA, with the new clause, was signed here on Friday between India and Kazakhstan by CBDT Chairman Sushil Chandra and Kazakhstan Ambassador to India Bulat Sarsenbayev.
The protocol for this DTAA specifically mentions that the information received from Kazakhstan for tax purposes can be shared with other law enforcement agencies with authorisation of the competent authority of Kazakhstan and vice versa.