India has signed a multilateral pact for automatic exchange of information on tax issues and developing new tools to tackle the tax evasion. The Organisation for Economic Co-operation and Development (OECD) in a release yesterday said; India, Canada, Iceland, Israel, New Zealand and China signed the Multilateral Competent Authority agreement in efforts to boost transparency by multinational enterprises. The signing ceremony took place in Beijing yesterday.
Other countries which have already signed the pact include Australia, France, Germany, Japan, Liechtenstein, Malaysia, Italy and the UK.
The pact allows all signatories to bilaterally and automatically exchange Country-by-Country Reports with each other. The OECD release added, it will help ensure that the tax administrations obtain a complete understanding of how the multinational enterprises structure their operations, while also ensuring that the confidentiality of such information is safeguarded.