India and Singapore on Friday amended their Double Taxation Avoidance Agreement (DTAA) to enable more effective mutual exchange of banking and tax related information.
Under the DTAA amendment protocol, which was signed here by Central Board of Direct Taxes (CBDT) Chairman Prakash Chandra and Singapore's High Commissioner to India Karen Anne Tan Ping Ming on behalf of the two countries, the two nations have adopted the internationally agreed standard for exchange of information in tax matters.
According to an official statement here, the “amending protocol will go a long way in strengthening relationship between India and Singapore and facilitate mutual cooperation by effective exchange of information in tax matters between [the] two countries.”
The international standardincludes the principles incorporated in the OECD Model Article on ‘Exchange of Information' and requires exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to a domestic tax interest requirement or bank secrecy for tax purposes. In the aftermath of the global financial crisis, there is increased recognition on the part of governments that improvements in exchange of information in tax matters are a part of a broader agenda to improve transparency and global governance.