GOVT is contemplating to revise the tax treaties
with partner countries to enable the Central Bureau of Investigation (CBI)
and Enforcement Directorate (ED) to use the data for prosecution of those
who have stashed black money abroad. Treaty partner countries have been
requested to modify the tax treaties, so as to explicitly include provisions
that will enable information exchanged for tax purposes to be utilized
for other purposes, including criminal proceedings in non-tax matters.
Forty
treaties for avoidance of double taxation have been revised accordingly.
In addition, India has also signed the Multilateral Convention on Mutual
Administrative Assistance in Tax Matters, which also similarly facilitates
exchange of information. These developments enable use of such information
by non-tax agencies, subject to agreement by the Competent Authorities
of the Requested Contracting State.
All treaty partner countries have not agreed to the proposal. Since a bilateral
treaty cannot be modified unless both treaty partners agree, it is not possible
to provide any time frame for this purpose
This was stated by Mr Santosh Kumar Gangwar, Minister of State in the Ministry
of Finance in written reply to a question in Lok Sabha today.
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