G20: India to press for transparency in tax haven functioning

PTI | February 18, 2011



Facing flak at home over black money stashed abroad, India will press for transparency in the functioning of tax havens at the G20 finance ministers meeting in Paris on Friday to unearth "ill-gotten" money lying in such sovereign jurisdictions.

"There should be transparency. Particularly the tax havens should cooperate with countries to unearth the ill-gotten resources which are being deposited there," finance minister Pranab Mukherjee said ahead of the meeting.

The finance ministers of the world's 20 top countries, including India, China, the US, UK and Russia, are meeting in Paris to review the international financial situation and issues like black money, rising energy and food prices.

He said a part of the black money generated through tax evasion is being deposited in foreign banks, particularly in tax havens. The Indian government is taking steps to tackle the menace, he said.

"We are addressing this issue by entering into agreements with them (tax havens)," Mukherjee said.

At present, India has Double Taxation Avoidance Agreements (DTAAs) with 78 countries and has started negotiations with them for making banking information related to taxes available.

There are sovereign jurisdictions which, however, are not sovereign countries, like St Kitts and the British Virgin Islands, among others.

"With them, we are not having DTAA, but we are entering into agreement, which is called exchange of tax information," Mukherjee said, adding that the problem of black money can be addressed only in a legal way.

"Without any legal framework, nobody is going to give information to you," he added.

India has already signed tax information exchange agreements (TIEA) with four jurisdictions -- the British Virgin Islands, Isle of Man, the Bahamas and Bermuda.

The coalition government in India, headed by prime minister Manmohan Singh, is facing heat over black money stashed abroad from the supreme court, the Opposition and the media.

The government is being blamed for not taking enough action in this regard.

Comments

 

Other News

Inching closer to a trade deal with America

The cooperation between India and the United States goes back quite a time. We need to relegate that era to the backburner when Pandit Jawaharlal Nehru visited US in the times of president Dwight Eisenhower and called the American let-off of 10 million dollars in defence aid to Pakistan as a “gun w

Manch vs Musk: Forty people and a foreign billionaire

About forty people walked the roundabout on Teen Murti Marg to the gate of Chanakyapuri police station, a distance you could cover in under a minute, on Friday to protest against Elon Musk’s Starlink. The walk was called by the Swadeshi Jagaran Manch. Nobody joined them on the way, and nobody seeme

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Can AI change India’s breast cancer story?

Breast cancer has become a public-health challenge in India. The greatest opportunity is to find cancers earlier. Artificial intelligence (AI) is opening a new era in breast cancer detection. AI systems can analyse mammograms and other breast-imaging studies, identify subtle abnormalities and assist radi

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter