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2011-02-22

Indo-German tax treaty revision

Looking for revision in the existing double taxation avoidance agreement

There has been a request placed by Finance Minster Pranab Mukherjee for early finalization of double taxation avoidance agreement. The Minters from the two counties met at the G20 finance ministers meet in Paris. Mukherjee requested his german counterpart Wolfgang Schaeuble to allow the German tax authorities to share information with Indian Enforcement Directorate.


“Though under the existing treaty, Germany is not obliged to share information for non-tax use, Germany has agreed to revise the article concerning exchange of information in the existing double taxation avoidance agreement for sharing information with our enforcement agencies," the finance ministry statement said.


This will lead to revision in the existing double taxation avoidance agreement, and will tighten the noose on tax evaders and track down money squirreled away in tax havens.

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