India and San Marino signed a Tax Information Exchange Agreement (TIEA) at Rome, Italy yesterday. The Agreement has been signed on behalf of India by Mr.Basant K. Gupta, Ambassador of India to Italy with concurrent accreditation to San Marino and Ms. Daniela Rotondaro, Ambassador of San Marino to Italy on behalf of San Marino.

Salient features of the agreement with San Marino are:

• The agreement is based on international standard of transparency and exchange of information.

• The agreement provides for exchange of information that is foreseeably relevant to the administration and enforcement of the domestic tax laws.

• The agreement has a specific provision that the requested Party shall use its information-gathering measures to obtain the requested information even though that Party may not need such information for its own tax purposes.

• The agreement provides for exchange of banking and ownership information.

• The agreement provides for the representatives of the competent authority of the requesting Party to enter the territory of the requested Party to interview individuals and examine records.

• The Agreement is expected to further strengthen tax cooperation between India and San Marino.

Tax information exchange establishes cross-border sharing of banking and ownership data to support tax administration and enforcement. Tax Information Exchange Agreement between India and San Marino creates a framework for exchange of information relevant to administration and enforcement of domestic tax laws, requires the requested Party to use its information gathering measures even when not needed for its own tax purposes, provides for exchange of banking and ownership information, and permits representatives of the requesting Party to enter the requested Party to interview individuals and examine records.