by Prabhakar K S of Shree Tax Chambers, Bengaluru, Karnataka, India
On 28 February, the governments of India and Brunei Darussalam, a Southeast Asian country, signed a tax information exchange agreement (TIEA) at India’s Capital, New Delhi.
A TIEA is an agreement to exchange information about banking, financial, and ownership interests between two countries for tax purposes.
TIEAs were developed and promoted by the OECD’s Global Forum’s working group on effective exchange of information to address harmful tax practices by promoting international cooperation in tax matters.
TIEAs enable sharing of information on two fronts, including on specific request and also on an automatic basis (AEOI).
It is said that the new TIEA arrangement will enhance the mutual co-operation between India and Brunei Darussalam by providing an effective framework for the exchange of information.
If approved by the two counties, the TIEA will help to curb tax evasion and provide much needed mutual assistance between the revenue officials of these two countries.
So far, India has entered into similar bilateral agreements with Argentina, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Macao, Monaco, San Marino, and, last October, with Liechtenstein.
— Prabhakar K S, is Proprietor of Shree Tax Chambers, Bengaluru, Karnataka, India.
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