In recent years, tackling global tax evasion and avoidance, facilitated through off shore legal entities and structures, has become a priority for governments around the globe. The political support for addressing this menace has resulted in development of standards on transparency and exchange of information and almost every jurisdiction in the world has now committed to implement these standards. This book provides guidance to tax authorities, taxpayers, tax professionals and public at large in understanding how global transparency and the commitment of jurisdictions to exchange information would facilitate investigation of cross-border transactions for effective protection of domestic tax revenue.
- Explains the role of tax havens and off shore financial centres in global tax evasion and avoidance
- Discusses how tax havens and off shore financial centres have been “identified” and listed over the years
- Discusses off shore leaks in brief like “Panama Papers” and their role in creating deterrence against off shore tax evasion and avoidance
- Discusses the development of global standards on transparency and exchange of information and the role of OECD, G20 and Global Forum in developing these standards
- Provides the details of assessments undertaken by the Global Forum regarding actual implementation of exchange of information and results of these assessments along with “Ratings“
- Discusses the legal provisions and relevant case law around the world for exchange of information including Article 26 of the OECD and UN Model DTAAs, TIEAs and Multi lateral Convention on Mutual Administrative Assistance in Tax Matters, including their historical development over the years
- Explains the key concepts of the exchange of information in detail including its legal basis, standard of foreseeable relevance, exchange of past period information, stolen data issue, confidentiality of information exchanged, disclosure before the courts, limitation on exchange of information, rights and safeguards, etc.
- Explains other forms of administrative assistance under the tax treaties including automatic exchange of information, spontaneous exchange of information, simultaneous tax examination and joint audits
- Discusses in detail the provisions for assistance in collection of taxes under the provisions of tax treaties including its historical development and relevant case law
- Explains in detail the provisions Common Reporting Standards (CRS) on Automatic Exchange of information (AEOI)
- Discusses in detail how the FATCA and CRS on AEOI are being implemented in India and abroad and how the information received on an automatic basis would be used for improving tax compliance
- Briefly discusses the recommendations made under G20/OECD BEPS Project for improving transparency including automatic exchange of Country-by-Country (CDC) reports
- Explains the provisions for disclosure of foreign income and assets under the Black Money Act and the Income-tax Act, 1961
About the Author
Rahul Navin is presently Commissioner of Income Tax (Transfer Pricing-I), posted in New Delhi. An IRS officer of 1993 batch, he has served in many capacities in his career of 23 years. He was part of the assessment and investigation wings, as Under Secretary in the Tax Policy and Legislation Division and Additional Director in the National Academy of Direct Taxes in-charge of training. From April 2011 to October 2015, he worked as Director in the FT&TR Division of the Central Board of Direct Taxes and during this period negotiated bilateral and multilateral agreements on Exchange of Information, and also coordinated the requests made/received under these agreements by the Income Tax Department. He also regularly attended the meetings of OECD, Global Forum on Transparency and Exchange of Information, and G20 as an Indian delegate and has made a significant contribution in improving global transparency in tax matters.