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Black money: India, OECD to cooperate

Source: PTI
June 15, 2011 17:35 IST
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India and OECD -- grouping of mostly industrialised nations -- have agreed to strengthen cooperation in cross border taxation issues, the finance ministry said on Wednesday.

The increased cooperation with Paris-based OECD comes at a time when India is grappling with issues of tax evasion and black money stashed in offshore accounts.

"Both (India and OECD) agreed for enhanced tax cooperation and suggest measures which will provide greater certainty to both taxpayers and the governments," the ministry said in a statement.

Organisation for Economic Cooperation and Development (OECD) has appreciated the action taken by India in handling tax evasion and black money issues.

Indian government has adopted a five-fold strategy to tackle the menace of illicit funds which include joining the global crusade against black money and creating appropriate legislative framework.

During a two-day high level tax conference that concluded yesterday, they also decided to enhance their cooperation in dealing with issues relating to transfer pricing.

The two sides will also promote better tax compliance and measures to improve the prevention and regulation of cross border dispute, it added.

In the seminar, participants explored some of the most complex challenges posed by the taxation of multi-national enterprises in a global economy.

India's growing integration into the global economy has exposed its tax policies to the same challenges facing the industrialised countries, notably how to adapt its domestic tax system and its international tax policies to a borderless economy.

India and OECD also announced plans to strengthen ongoing co-operation on tax-related issues through the development of a three-year partnership that will provide greater opportunities for structured dialogue and sharing of information.

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