Multilateral Competent Authority Agreement India

As of July 2015 [updated], 53 lawyers had signed the automatic exchange of information agreement; [7] As of July 2016 [updated], 83 jurisdictions had signed the agreement. [6] India has signed a multilateral pact that would help it better understand how multinationals structure their activities around the world and distribute the income and taxes paid. Their aim is to combat tax evasion. The idea was based on the implementation agreements of the FATCA (US Foreign Account Tax Compliance Act) and its legal basis is the Convention on Mutual Assistance in Tax Matters. 97 countries have signed an implementation agreement and others intend to sign it at a later date. The first report took place in 2017 and many of the others from 2018 on. The new system should automatically and systematically transfer all relevant information. The agreement was informally called GATCA (the global version of FATCA),”[1] but `crS is not just an extension of FATCA`. [4] Transparency groups have reacted in different ways, with some criticizing the way in which developing countries have been (not) taken into account and involved. [23] Collecting and providing information can be so costly and difficult for developing countries to measure. Instead of offering a period of non-reciprocity during which developing countries could simply obtain financial data, the only mention of non-reciprocity agreements is the supply of tax havens. [23] Amit Maheshwari, Partner, Ashok Maheshwary & Associates, a CA firm, said Indian tax administrators can have a complete understanding of how MNCs structure their operations and allocate income and taxes.

The confidentiality of such information is also guaranteed, as it is a simple government channel for the exchange of information, he said. Similarly, other countries could benefit from signing the multilateral agreement, he added. . . .