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Manual on Exchange of Information issued by CBDT, May 2015
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....anual on Exchange of Information issued by CBDT, May 2015 <br>News and Press Release<br>Dated:- 27-5-2015<br><BR>============= Document 1 Manual on Exchange of Information GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES Arada à FOREIGN TAX & TAX RESEARCH DIVISION MAY, 2015 Manual on Exchange of Information सतà¥à¤¯à¤®à¥‡à¤µ जयते GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES FOREIGN TAX & TAX RESEARCH DIVISION MAY, 2015 सतà¥à¤¯à¤®à¥‡à¤µ जयते FOREWORD à¤à¤¾à¤°à¤¤ सरकार GOVERNMENT OF INDIA वितà¥à¤¤ मंतà¥à¤°à¤¾à¤²à¤¯ / राजसà¥à¤µ विà¤à¤¾à¤— MINISTRY OF FINANCE DEPARTMENT OF REVENUE केनà¥à¤¦à¥à¤°à¥€à¤¯ पà¥à¤°à¤¤à¥à¤¯à¤•à¥à¤· कर बोरà¥à¤¡ CENTRAL BOARD OF DIRECT TAXES नारà¥à¤¥ बà¥à¤²à¥‰à¤•, à¤....
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....¨à¤ˆ दिलà¥à¤²à¥€ - 110 001 NORTH BLOCK, NEW DELHI - 110 001 The CBDT had, in 2013, brought out a Manual to provide guidance to field officers on the scope and manner of exchange of tax-related information under the various tax treaties and agreements that India has entered into. Since then, there has been an increasing global consensus on the necessity of cooperation amongst countries to tackle the problem of offshore tax evasion and avoidance. Currently through our treaty network we have exchange of information relationship with more than 130 countries/jurisdictions, including well-known offshore financial centers. This extensive treaty reach, coupled with the existing international environment, presents a unique opportunity to our officers to seek and obtain information/evidence located outside India that may be necessary for tackling the problem of offshore tax evasion and avoidance as also unearthing of undisclosed money stashed abroad. This Manual on Exchange of Information is a comprehensively revised and carefully put together document that provides detailed guidelines for framing requests for information under the provisions of ta....
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....x treaties, as also guidelines for providing clarifications and feedback that would facilitate the receipt of information/evidence. Other forms of administrative assistance possible under the tax treaties, as well as assistance that can be sought under other legal instruments have been described in detail. Recent international developments in transparency including the global adoption of the new standards on automatic exchange of information have also been summarized in the Manual to give an overview of the future potential of our ability to receive and utilize information regarding Indians having financial accounts in offshore financial centers. The confidentiality that must permeate all forms of assistance obtained and provided under the treaties has been clearly brought out. I hope that the information provided in this Manual will be useful to the officers of the Income Tax Department not only today but also in the foreseeable future. صمصه (Anita Kapur) Chairperson, CBDT TABLE OF CONTENTS CHAPTER-I : INTRODUCTION CHAPTER-II : ADMINISTRATIVE ASSISTANCE UNDER TAX TREATIES.……………………………â....
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....¦â€¦â€¦â€¦â€¦.. 2.1 Introduction 2.2 Exchange of Information under Tax Treaties 2.3 Assistance in Collection of Taxes under Tax Treaties 2.4 Spontaneous Exchange of Information.……………….... 2.5 Simultaneous Examination, Tax Examination Abroad and Industry-wide Exchange of Information...... 2.6 Joint Audits.......... 2.7 Service of Documents. 2.8 Automatic Exchange of Information.......... 2.9 Summary of Administrative Assistance under different Tax Treaties CHAPTER-III :GUIDELINES FOR MAKING REQUEST FOR EXCHANGE OF INFORMATION …..1 .4 .4 .5 .7 .8 .9 .....10 .10 .10 .12 3.1 Introduction and Legal Basis.... 3.2 Exchange of Information for Carrying out Provisions of the DTAAS ..13 .13 .14 3.3 Exchange of Information for Administration and Enforcement of Domestic Laws .......15 3.3.1 Introduction. .15 3.3.2 Nature and Type of Information Available in Countries/Jurisdictions outside India that may be Requested.......... .15 (a) Identity and Ownership Information in case of Legal Entities and Arrangements ........ .16 (b) Accounting Information.......... ..16 (c) Banking Inform....
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....ation…...... ...17 (d) Information Available with Tax Administration .17 3.3.3 Illustrative Examples/Case Studies on Requests made under Exchange of Information........ .18 Manual on Exchange of Information 3.3.4 Fishing Expedition.. 3.3.5 Group Requests ...... .19 ..20 3.4 Training and Seminars ....... ..20 3.5 Procedural Guidelines for Making EOI Requests. .21 3.5.1 All Communication to be made only by CIT/DIT concerned to the Competent Authority .21 3.5.2 Responsibility of Range/Unit Head for initiating EOI requests and providing Clarification/Feedback............ ..21 3.5.3 Request to be made in Form A..... .22 3.5.4 Timely submission of Requests......... .22 3.5.5 Extension of Time Limit....... .22 3.5.6 Change in Jurisdiction to be intimated to FT&TR Division.......... .23 3.5.7 3.5.8 Separate Form for Separate Taxpayers and for Separate Countries Person under Investigation to be clearly identified. .23 .23 3.5.9 Efforts for Obtaining Information in India to be Exhausted prior to making the Request .23 3.5.10 Information from Publicly Available Sources to be verified before making EOI request ………â€....
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....¦â€¦â€¦â€¦.. .24 3.5.11 Demonstrating "Foreseeable Relevance" .24 3.5.12 Request for Information should be drafted in Simple Language. .25 3.5.13 Request for Voluminous Information should be Avoided. .25 3.5.14 Information about Foreign Taxpayers to be provided. .26 3.5.15 3.5.16 Verification of Documents submitted by the Taxpayers.….………..…………….. Multi-level Enquiry Necessary in Some Cases. ..26 .26 3.5.17 Time Period or Taxable Event and the Period of Limitations 3.5.18 Request to Refrain from Notification ..26 .28 3.5.19 Name and Address of the Person Believed to be in Possession of Information 3.5.20 3.5.21 Specific Requirements in case of Certain Jurisdictions Declarations. .28 .29 .29 22 Manual on Exchange of Information 3.6 3.7 3.8 3.9 Processing in the Office of Competent Authority 3.6.1 3.6.2 Return of Defective Forms...... Acknowledgment.….….….….….….………………….. Table 1: Proforma for Acknowledgment by Competent Authority. Guidelines for Providing Clarification Guidelines for Utilizing th....
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....e Information and Maintaining Confidentiality 3.8.1 3.8.2 3.8.3 3.8.4 Receipt of Information by the Competent Authority and Forwarding it to the Officer concerned Maintaining Confidentiality of Information Exchanged.. Fresh Request during Appellate and other Proceeding Fresh Request during Penalty/Prosecution Proceeding. Guidelines for Providing Feedback.......... 3.9.1 3.9.2 Introduction. Initial Feedback and Request for further Information... Table 2: Proforma for providing Initial Feedback and Request for further Information by the CIT/DIT concerned 3.9.3 3.10 Feedback on Completion of Assessment and Other Proceedings. Information to be Maintained by the CIT/DIT concerned Table 3: Sample Proforma for Maintaining Information by the CIT/DIT concerned for the Purposes of Monitoring....... Information to be maintained in the Office of Competent Authority. 3.11 Table 4: Information maintained in the Office of Competent Authority in case of Outbound Requests ............ .29 .29 .29 .30 ..30 .31 .31 .32 .33 .34 .34 .34 .34 .35 .35 .36 .36 .37 .37 CHAPTER-IV: GUIDELINES FOR HANDLING THE REQUESTS IN SPECIFIC CASES FROM FOREIGN TAX AUTHORITI....
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....ES. ..............39 4.1 Introduction .39 4.2 4.2.1 4.2.2 4.2.3 Receipt of Requests and Forwarding to the Officers in Field Formation Requests Received by the Indian Competent Authority.. Forwarding the Requests for Gathering of Information Acknowledgment by the DGIT. _ ..39 .39 ..40 .40 Manual on Exchange of Information 4.3.4 4.4 4.5 Guidelines for Collecting Information...... Availability and Collection of Information.. 4.3 .41 4.3.1 .41 4.3.2 Providing Additional Information under Spontaneous Exchange .41 4.3.3 Non-disclosure of Source of Request for Information and Competent Authority Letter….……………… Maintaining Confidentiality Timelines to be Followed: Interim and Final Reports. Preparing Reports and Forwarding to the Competent Authority. .41 .41 .41 ..42 4.5.1 Self-contained Report ..42 4.5.2 Points to be Included in the Self-contained Report............ .42 4.5.3 Quality Information and Appreciation by the Foreign Competent Authority..43 4.6 Information maintained in the Office of Director General .43 Table 5 : Sample Proforma for Maintaining Information in the Office of Director Ge....
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....neral for the Purposes of Monitoring ..... .43 4.7 Information Maintained in the Office of Competent Authority ..44 Table 6: Information Maintained in the Office of Competent Authority in Case of Inbound Request. .44 CHAPTER-V : GUIDELINES FOR OTHER FORMS OF ADMINISTRATIVE ASSISTANCE....... ..45 5.1 Introduction. ..45 5.2 Making Requests for Assistance in Collection of Taxes... ..45 5.3 Handling Requests for Assistance in Collection of Taxes Received from Foreign Competent Authority. ..47 5.4 Spontaneous Exchange of Information Received from Foreign Competent Authority...... ..48 Table 7: Proforma for Feedback in Case of Spontaneous Exchange of Information.......49 5.5 Spontaneous Information Shared with Foreign Competent Authority .49 5.6 Tax Examination Abroad. .50 5.7 Simultaneous Examination......... .51 5.8 Joint Audits..... .52 Manual on Exchange of Information 5.9 Incoming Automatic Exchange of Information under non-standard format 5.9.1 Introduction. 5.9.2 Nature of Information Received .... 5.9.3 Forwarding of Information to Directorate of I&CI. 5.9.4 Handling of Information by Directorate of I&CI. 5.9.5 Use of non-PAN Data....
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..../Information 5.9.6 Use of PAN Data/Information .......... 5.9.7 5.9.8 Procedure for Obtaining Additional Information......... Feedback on Use of Information under Automatic Exchange ..53 .53 .53 .53 .54 .54 .54 .55 .55 Table 8: Feedback of the Information received under AEOI in non-standard format ...55 5.9.9 5.10 Small Tax Effect Outgoing AEOI under Non-standard Format ........ ..............56 .56 CHAPTER-VI: ASSISTANCE FROM FOREIGN COUNTRIES UNDER OTHER LEGAL INSTRUMENTS ..57 6.1 Introduction ..57 6.2 Mutual Legal Assistance Treaties ....... .57 6.3 Making a Request under MLAT. .58 6.3.1 Nodal Officer in CBDT. .58 6.3.2 Issues to be kept in mind while Making Requests under MLAT. ..58 6.3.3 Use of Information and Confidentiality ..60 6.4 Egmont Group of FIUS............. ..60 6.4.1 Exchange of Information between FIUs . ...60 6.4.2 Nodal Officer in CBDT. ..60 6.4.3 MoU between FIU and CBDT ...61 6.4.4 Issues to be kept in mind while Making Requests under Egmont Group..........61 6.4.5 Use of Information and Confidentiality ..61 CHAPTER-VII: CONFIDENTIALITY .62 7.1 Introduction ....... .62 7.2 Confidentiality Provis....
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....ions under Tax Treaties .63 Manual on Exchange of Information 7.3 Domestic Provisions for Maintaining Confidentiality and Precedence of Treaty Provisions...... 7.4 7.5 Use of Information Received for Non-tax Purposes. Administrative Policies and Practices to Protect Confidentiality. 7.5.1 Introduction........ ..65 ..66 ..67 ...........67 7.5.2 7.5.3 Classification of Treaty Exchanged Information....... Measures for Protection of Treaty Exchanged Documents ..67 ..68 7.5.4 Training and Awareness. .68 7.5.5 Investigation for Unauthorized disclosure. ..69 7.6 Information Security Committee . .69 CHAPTER-VIII: RELATED INTERNATIONAL DEVELOPMENTS IN EXCHANGE OF INFORMATION. ..71 8.1 Foreign Accounts Tax Compliance Act (FATCA). ..71 8.2 Common Reporting Standards on Automatic Exchange of Information .......... ..73 8.2.1 Development of the new Global Standards on AEOI ..73 8.2.1.1 Limitation of Information Exchanged on Request Basis. .73 8.2.1.2 Limitation of AEOI under Non-standard Format...... ..73 8.2.1.3 Enactment of FATCA and Leveraging for Development of Global Standard...73 8.2.2 Global Adoption of the CRS on AEOI ..74 8.2.3 Main Fe....
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....atures of the CRS on AEOI ..74 8.2.3.1 Overview...... ..74 8.2.3.2 Who will report under CRS.... ............75 8.2.3.3 What Accounts need to be Reported........... ..75 8.2.3.4 Procedure to determine that an Account holder is a Non-resident ..75 8.2.3.5 Account Information which needs to be Reported. ..76 Overview. 8.3 8.2.3.6 Competent Authority Agreement. 8.2.3.7 Technical Solutions. Implementation of CRS on AEOI 8.3.1 ..77 .77 ..78 .78 8.3.2 Entering into Agreements for Exchanging Information Automatically ........ ..78 Manual on Exchange of Information 8.3.3 Domestic Legislation, Regulations and Guidelines 8.3.4 IT and Administrative Infrastructure 8.3.5 Broad Responsibility for Implementing the CRS on AEOI 8.4 Global Forum on Transparency and Exchange of Information for Tax Purposes 8.4.1 Introduction ......... 8.4.2 Peer Review of Exchange of Information on Request 8.4.3 Global Forum work on Automatic Exchange of Information ..78 .79 .79 .80 ..........80 ..80 ..82 8.5 8.5.1 Exchange of Information under G20/OECD BEPS Project . What is BEPS Project .83 .83 8.5.2 (a) (b) Combating BEPS through Exchange of Information. ....
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.... Automatic Exchange of CbC Reports - Action 13. Spontaneous Exchange of Rulings - Action 5 .84 ..84 .84 (c) Exchange of Mandatory Disclosure Regimes - Action 12 .84 8.6 Joint International Tax Shelter Information & Collaboration....... 8.6.1 Original JITSIC .........85 ..85 8.6.2 New Mandate of JITSIC. _ Enhanced Collaboration..... ..85 8.7 8.6.3 Text of Communiqué and Intervention in G20 Meetings ...... 8.7.1 ..85 ..85 G20 Finance Ministers' Meeting in Cairns, Australia on 20th and 21st September, 2014 ...... .85 8.7.2 G20 Leaders Meeting in Brisbane on 15th and 16th November, 2014.................86 8.7.3 G20 Finance Ministers' Meeting in Istanbul, Turkey on 9th and 10th February, 2015. ..86 8.7.4 G20 Finance Ministers' Meeting in Washington D.C. on 18th April, 2015.........87 8.7.5 PM's Intervention during G20 Leaders' Summit in Brisbane on 16th November, 2014........ ..87 8.7.6 FM's Intervention during G20 FMs meeting in Washington on 18th April, 2015 ...... .87 Manual on Exchange of Information Annexure-A India's Tax Treaties as on 1st May, 2015.... ..89 Annexure-B Article 26 of the OECD Model Tax Convention and its Commentary......
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............100 Annexure-C Model TIEA by OECD..... .............118 Annexure-D Text of Multilateral Convention and its Commentary. .125 Annexure-E SAARC Limited Multilateral Agreement. ...........188 Annexure-F: List of Countries with which Assistance in Collection of .......... .......197 Taxes is Possible (as on 1st May, 2015).. Annexure-G: Article 27 of the OECD Model Tax Convention and its Commentary...........202 Annexure-H: List of Countries with which India has a Mutual Legal Assistance Treaty .... Annexure-I: MoU between FIU-IND and CBDT...... .......... ............211 Annexure-J Sample Proforma for Making Request from Egmont Group of FIUS...........215 Annexure-K Jurisdictions Committed to Implement CRS on AEOI as on 1st May, 2015.. Glossary of Terms ........... Some Important Case Laws under EOI Bibliography/Information on Internet.. Part A: Important Reference Material _ .............217 .....219 .227 .............245 .245 Part B: Publicly Available Information Relevant for Drafting Requests 248 Competent Authority Contact Details....... .......... ..251 APPENDIX: Form A: Request for Information under the Provisions of Tax Treaties......2....
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....55 Part I of Form A...... Part II of Form A General Instructions for filling up Form A. _ Instructions for filling up Part I of Form A. Instructions for filling up Part II of Form A.…... Manual on Exchange of Information .255 .256 .259 .260 ...260 LIST OF ABBREVIATIONS AEOI BEPS CAA CbC CBDT CCIT/DGIT CISO CIT/DIT CRS DTAA DRP EOI FATCA FATF FIU FIU-IND FTA FT&TR Global Forum I&CI Income-tax Act ISC ISPP JITSIC Automatic Exchange of Information Base Erosion and Profit Shifting Competent Authority Agreement Country by Country Reporting Central Board of Direct Taxes Principal Chief Commissioner of Income Tax/Principal Director General of Income Tax/Chief Commissioner of Income Tax/Director General of Income Tax Chief Information Security Officer Principal Commissioner of Income Tax/Principal Director of Income Tax/Commissioner of Income Tax/Director of Income Tax Common Reporting Standard Double Taxation Avoidance Agreement Dispute Resolution Panel Exchange of Information Foreign Account Tax Compliance Act Financial Action Task Force Financial Intelligence Unit Financial Intelligence Unit of India Forum on Tax Administrat....
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....ion Foreign Tax & Tax Research Global Forum on Transparency and Exchange of Information for Tax Purposes Intelligence & Criminal Intelligence Income-tax Act, 1961 Information Security Committee Information Security Policies and Procedures Joint International Tax Shelter Information Centre Manual on Exchange of Information KYC/AML MCAA Multilateral Convention MHA MLAT OECD PRG SAARC Agreement TIEA ΤΡΟ TRO TPL Know Your Customer/Anti Money Laundering Multilateral Competent Authority Agreement Multilateral Convention on Mutual Administrative Assistance in Tax Matters Ministry of Home Affairs Mutual Legal Assistance Treaty Organization for Economic Cooperation and Development Peer Review Group SAARC Limited Multilateral Agreement Tax Information Exchange Agreement Transfer Pricing Officer Tax Recovery Officer Tax Policy and Legislation Manual on Exchange of Information CHAPTER - I INTRODUCTION 1.1 Tackling offshore tax evasion and tax avoidance and unearthing of unaccounted money stashed abroad have become a pressing concern for governments all around the world. The information and/or evidence of such tax avoidance/evasion and the underl....
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....ying criminal activity is often located outside the territorial jurisdiction and thus this menace can be addressed only through bilateral and multilateral cooperation amongst tax and other authorities. The Government of India has played an important role in international forums in developing international consensus for such cooperation as per globally accepted norms and continuous monitoring of their adoption by every jurisdiction including offshore financial centres. 1.2 Initially, the international norms were to provide assistance to other countries only on satisfaction of the norms of “dual criminalityâ€, i.e., in cases of drug trafficking, corruption, terrorist financing etc. which are criminal activities in both countries. However, at present the cooperation has extended to cases of tax evasion and avoidance and countries are obliged to exchange information requested as per provisions of tax treaties/agreements. The third stage of cooperation would be automatic exchange of financial account information without countries having to make requests for the same, thereby enabling the receiving country to verify whether such accounts indicate tax evaded money ....
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....and to take necessary action.# 1.3 Despite a global consensus on coordinated action to tackle the problem of tax evasion and tax avoidance, foreign governments, particularly offshore financial centres, are most unlikely to provide information on the basis of just letters or on a plea regarding their moral obligations to prevent tax evasion. Among other factors, parting with information without a legal basis may be challenged in their own Courts and may be against their own public policy or public opinion of their citizens. Such information about money and assets hidden abroad and about undisclosed transactions entered into overseas, can be obtained only through “legal instruments" or treaties entered into between India and those countries. 1.4 Tax Treaties, which include, Double Taxation Avoidance Agreements (DTAAs), Tax Information Exchange Agreements (TIEAs), Multilateral Convention on Mutual Administrative # Adapted from the speech of Hon'ble Finance Minister in the Lok Sabha replying on the debate on "Black Money" on 19.11.2014 Manual on Exchange of Information 1 Assistance in Tax Matters (Multilateral Convention) and SAARC Limited Multilateral Agreement ....
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....(SAARC Agreement), are the legal instruments which provide a legal obligation on a reciprocal basis for providing various forms of administrative assistance, including Exchange of Information, Assistance in Collection of Taxes, Tax Examination Abroad, Joint Audit, Service of Documents etc. Through one or more of these tax treaties, India has exchange of information relationships with more than 130 countries/jurisdictions including well known offshore financial centres and these jurisdictions are legally committed to provide administrative assistance and are actually providing the same in cases where requests are made. 1.5 Information and other forms of assistance can also be requested through Mutual Legal Assistance Treaties (MLATs) through Ministry of Home Affairs, particularly with countries/jurisdictions with which there is no tax treaty. Information/evidence obtained through MLATs can also supplement the information received under tax treaties when a criminal complaint is made for tax evasion on the basis of information received under tax treaties. Information can also be obtained through Egmont Group of Financial Intelligence Units (FIUs) which may be further supp....
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....lemented by making further requests under tax treaties/MLATS. 1.6 Despite the existence of legal instruments for administrative assistance and the willingness of our treaty partners to provide information, these provisions are still underutilized, largely because officers of the tax department are not fully aware of the provisions and need guidance for framing effective requests for information under appropriate legal instruments. The officers may also not be fully aware of the recent international developments in transparency including the global adoption of the new standards on automatic exchange of information, which will bring about a sea-change in our ability to receive and utilize information regarding Indians having financial accounts in offshore financial centres. This revised edition of the Manual on Exchange of Information seeks to bridge that gap with the hope that in all appropriate cases request for administrative assistance will be made to our treaty partners with a view to tackle the problem of offshore tax evasion and avoidance. 1.7 At the same time, treaty obligations are reciprocal and accordingly wherever a request for assistance is received from a....
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.... treaty partner, the same must be given highest priority and all efforts should be made to provide high quality and timely response. The Manual also contains instructions for providing administrative assistance to our treaty partners which should be followed scrupulously by the officers concerned and should be strictly monitored by senior officers not only to fulfil our treaty obligations, but also for giving a moral authority to the Government of India to demand similar assistance from others, including offshore financial centres. 1.8 The content of this Manual on Exchange of Information has been organized in the following manner. After Introduction in the present Chapter, the legislative framework of Exchange of Information (EOI) and other forms of Administrative Assistance under India's DTAAS and TIEAs have been explained in Chapter-II. Chapter-III provides the guidelines for making specific requests for Exchange of Information under the tax treaties. Chapter-IV provides 2 Manual on Exchange of Information the guidelines to be followed in case a request is received from our treaty partners. Chapter-V provides the guidelines for other forms of administrative assist....
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....ance, including assistance in collection of taxes, spontaneous exchange of information, tax examination abroad, simultaneous examination, joint audits, service of documents and automatic exchange of information under the non-standard format. Chapter-VI briefly explains the procedure for making requests under other legal instruments such as MLATs and Egmont Group of FIUs. In Chapter-VII, the necessity to maintain strict confidentiality in all forms of Exchange of Information is explained. In Chapter- VIII, the related international developments in Exchange of Information including Foreign Accounts Tax Compliance Act (FATCA) of USA, the new global standards on automatic exchange of financial accounts information i.e. Common Reporting Standard (CRS) on Automatic Exchange of Information, work of Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum), Exchange of Information under the Project on Base Erosion and Profit Shifting (BEPS), Joint International Tax Shelter Information & Collaboration (JITSIC), as also the tax issues discussed in G20 meetings have been summarized. The Manual also contains important Case Laws on EOI, Glossary of Te....
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....rms used and a summary of relevant information available on the Internet. Manual on Exchange of Information 3 CHAPTER-II ADMINISTRATIVE ASSISTANCE UNDER TAX TREATIES 2.1 Introduction Tax treaties are the legal instruments obliging the contracting states to provide wide range of administrative assistance, including exchange of information, assistance in collection of taxes, tax examination abroad etc. These tax treaties include the following: Double Taxation Avoidance Agreements (DTAAs): The primary purpose of the DTAAs is allocation of taxing rights between the treaty partners and the avoidance of double taxation. However, DTAAs also have as an objective, the prevention of fiscal evasion and contain provisions for providing administrative assistance, including exchange of information for assistance in implementation of the DTAA and in administration or enforcement of domestic tax laws of the Contracting States. As on 1st May, 2015, India has DTAAs with 94 countries. DTAAs with seven more countries are being negotiated. Tax Information Exchange Agreements (TIEAs): The TIEAs have provisions only for exchange of information and are usually entered into with those co....
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....untries/jurisdictions (such as offshore financial centres) where it may not be feasible to expediently enter into a comprehensive DTAA. As on 1st May, 2015, India has entered into 16 TIEAs. One TIEA has been signed, but is yet to come into force, while negotiations for 29 TIEAs are going on. Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Multilateral Convention) is a multilateral instrument which provides for a wide range of administrative assistance including exchange of information, assistance in collection of taxes, tax examination abroad, etc. It has been in force in India since 1st June, 2012. As on 1st May, 2015, the Multilateral Convention has been signed by 85 countries/jurisdictions and 64 countries/jurisdictions have deposited the instrument of ratification SAARC Limited Multilateral: Agreement (SAARC Agreement) is a multilateral agreement amongst SAARC countries and has been in force since 1st April, 2011 and has provisions for a wide range of administrative assistance. Annexure-A lists India's tax treaties with other countries/jurisdictions, including the tax treaties under negotiation. With many countries/jurisdictions, there ....
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....is more than one tax treaty. Administrative assistance can be requested under the provisions of the appropriate treaty, depending on the purpose of assistance. For instance, with a country "X", assistance in collection Manual on Exchange of Information of taxes may not be possible under DTAA, but may be available under the Multilateral Convention making it an appropriate choice of tax treaty for such requests. 2.2 Exchange of Information under Tax Treaties 2.2.1 The tax treaties oblige the Contracting States to exchange information for the purposes of implementation of the treaty or for administration or enforcement of domestic tax laws. Although there are some differences in the language of individual treaties as also between the DTAAs, TIEAS etc., the principles for exchanging information under all these treaties are essentially the same. The “international standards†in this regard have been developed through consensus in international bodies including OECD, United Nations and Global Forum and are best represented by Article 26 of the OECD Model Tax Convention and its Commentary, as updated in 2014, which is at Annexure-B. 2.2.2 The principles contain....
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....ed in Article 26 of the OECD Model Tax Convention are summarized below: (a) The "competent authorities" of the Contracting States are obliged to exchange information. The term “Competent Authority" is defined in the tax treaties as the Minister of Finance/Ministry of Finance or a person authorized by it. In India, JS (FT&TR-I) performs the role of competent authority for countries in North America (including Caribbean) and Europe, while JS (FT&TR-II) performs the role of competent authority for the rest of the world. (b) The information requested should be "foreseeably relevant" for (i) carrying out the provisions of the DTAA or (ii) administration and enforcement of the domestic laws concerning taxes of every kind and description imposed by the Contracting State or their political sub-divisions and local authorities. In some of the DTAAs, in place of the words "foreseeably relevantâ€, the word "necessary" is used. However, it is internationally accepted that these two terms broadly convey the same meaning. (c) Exchange of information is not restricted by Article 1 of the OECD Model Convention. Article 1 states that the DTAA is applicable to persons who ....
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....are residents of one or both of the Contracting States. Thus, as per Article 26, information about residents of third countries can be exchanged. Further, other information related to tax administration and compliance improvements, for example, risk analysis techniques or tax avoidance or evasion schemes, can also be exchanged under the provisions of Article 26 of the DTAA. (d) Exchange of information is also not restricted by Article 2 concerning taxes covered. Thus, information about indirect taxes, taxes levied by State Governments etc. can also be exchanged under DTAAs, if so agreed to by the Contracting States. (e) Any information received under the provisions of tax treaties shall be treated as secret in the Manual on Exchange of Information LO same manner as information obtained under the domestic laws of that State. In India, section 138, read with section 280 of the Income-tax Act, governs the disclosure of taxpayer information obtained under domestic law and the same principles would govern information received under treaties also. (f) In addition, the information received under the tax treaties shall be disclosed only to persons or authorities (including ....
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....courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution or deciding appeals in relation to taxes or to the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. (g) The information received by a Contracting State may be used for other (non-tax) purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use. (h) The Contracting States are not obliged to carry out administrative measures at variance with laws and administrative practice of either contracting state, to supply information which is not obtainable under the laws or in the normal course of the administration of either contracting state or to supply information which discloses any commercial secret or which would be contrary to public policy. (i) If information is requested by a Contracting State, the other Contracting State is obliged to use its information gathering measures to obtain the requested information, eve....
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....n though that other State may not need such information for its own tax purposes. (j) The Contracting States are obliged to provide information held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity including ownership interests. 2.2.3 The TIEAS entered into by India are modelled on the basis of 2002 Model Agreement on Exchange of Information, the Model TIEA, a copy of bilateral version of which is at Annexure- C. The principles for exchange of information, including the standards of foreseeable relevance and confidentiality of information exchanged under TIEAs are generally similar to those under the DTAAS. 2.2.4 The text of the Multilateral Convention and its Commentary is at Annexure-D. Articles 4 and 5 of the Multilateral Convention oblige the signatories of the Convention to exchange information which is foreseeably relevant for the administration and enforcement of domestic laws concerning taxes. The principles for exchange of information including confidentiality provisions in the Multilateral Convention are generally similar to those underlying Article 26 of the OECD Model Tax Convention. 2.2.5 The text of ....
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....SAARC Limited Multilateral Agreement is at Annexure-E. The principles for exchange of information and confidentiality of information exchanged are also generally similar in this case. Manual on Exchange of Information 2.3 Assistance in Collection of Taxes under Tax Treaties 2.3.1 Tax authorities have enough powers to enforce the collection of taxes owed by a taxpayer. However, due to jurisdictional limitation, these powers cannot be exercised when the taxpayer has left the jurisdiction without paying the tax dues or has no assets within the jurisdiction that may serve to recover the debts. The provisions for Assistance in Collection of Taxes provide the legal basis for rendering assistance by one Contracting State in the collection of tax owed to the other Contracting State. 2.3.2 The provisions for Assistance in Collection of Taxes are present in 48 out of 94 DTAAs and in 3 out of 16 TIEAs which are in force in India. The Multilateral Convention and the SAARC Agreement also have provisions for assistance in collection of taxes. However, in the Multilateral Convention, the signatories can place a reservation against providing such assistance and several countries/jur....
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....isdictions have put in such reservation. Annexure-F lists the countries/jurisdictions with whom India has an agreement under one or the other treaty for assistance in collection of taxes. 2.3.3 Although there may be differences in language used in the different treaties, the provisions for assistance in collection of taxes are generally based on Article 27 of the OECD Model Tax Convention, a copy of which, alongwith its Commentary is at Annexure-G. The main principles are summarized below: The Contracting States are obliged to render assistance in collection of “revenue claims" which are amounts owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities. Thus, the scope of cooperation is very wide. The assistance is extended to interest, administrative penalties and costs of collection or conservancy related to such amounts. The "revenue claim" shall be collected by the requested State in accordance with the provisions of its laws applicable to enforcement and collection of its own taxes as if the revenue claim is of its own. The "revenue claim" should be enforceabl....
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....e under the law of the requesting State and it should be owed by a person who, at that time, cannot, under the law of that state, prevent its collection. Conservancy measures in accordance with provisions of its own law should also be taken by the requested State if a request is made in this regard as if the revenue claim is its own even if the revenue claim is not enforceable in the requesting State or is owed by a person who has a right to prevent its collection. However, the amount of claim should be quantified and evidenced by a statutory order or notice. The assistance is not restricted by Articles 1 and 2 of the Model DTAA and thus extends to taxes owed by residents of third countries and also in respect of taxes not covered by the DTAA, i.e., indirect taxes and taxes levied by State Governments. Manual on Exchange of Information 7 The assistance is provided only when the requesting State has taken reasonable measures of collection or conservancy, as the case maybe, under its own laws or administrative practice. 2.3.4 In some of India's DTAAs, an additional paragraph has been added, referring to cases where interim or provisional measures have been taken by on....
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....e of the Contracting State to freeze the assets even before the actual raising of tax claim against a person. In DTAAs, where this provision is in place, if an interim or provisional measure under Indian domestic laws, for instance provisional attachment under section 281B of the Income-tax Act, is taken, a request can be made to our treaty partner to take similar measures in accordance with domestic laws of that other State. Article 12 of the Multilateral Convention also allows for making requests for taking interim or provisional measures in such circumstances. Here it may be noted that these requests may be resorted to only if facts and circumstances exist that justify such a request, such as a reasonable probability of the taxpayer alienating its assets (from which the recovery of a revenue claim can be possibly made in consequence of a request for assistance in collection of taxes) in the treaty partner country. 2.4 Spontaneous Exchange of Information 2.4.1 Under the DTAAs, information may also be exchanged on a spontaneous basis without making a specific request by the requesting country. This exchange may be made for example in cases where a Contracting State h....
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....as acquired through certain investigations, information which it supposes to be of interest to the other State [refer Para 9(c) of the Commentary to Article 26 of the OECD Model Tax Convention]. 2.4.2 The OECD Commentary on the Model TIEA, however, states that the parties are not obliged to exchange information spontaneously and thus spontaneous exchange normally does not take place under TIEAS. 2.4.3 The Multilateral Convention has a specific Article on "Spontaneous Exchange of Information†(Article 7). This Article provides that a Party shall, without prior request, forward to another Party information of which it has knowledge in the following circumstances: the first-mentioned Party has grounds for supposing that there may be a loss of tax in the other Party; a person liable to tax obtains a reduction in or an exemption from tax in the first-mentioned Party which would give rise to an increase in tax or to liability to tax in the other Party; business dealings between a person liable to tax in a Party and a person liable to tax in another Party are conducted through one or more countries in such a way that a saving in tax may result in one or the other Part....
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....y or in both; a Party has grounds for supposing that a saving of tax may result from artificial transfer of profits between entities belonging to the same groups of enterprises; information forwarded to the first-mentioned Party by the other Party has enabled 8 Manual on Exchange of Information information to be obtained which may be relevant in assessing liability to tax in the latter Party. The Multilateral Convention also provides that each Party shall take such measures and implement such procedures as are necessary to ensure that information described above will be made available for transmission to another Party. 2.5 Simultaneous Examination, Tax Examination Abroad and Industry-wide Exchange of Information 2.5.1 Para 9.1 of the Commentary on Article 26 of the OECD Model Tax Convention states that Contracting States may use other techniques to obtain information which may be relevant to both Contracting States such as simultaneous examinations, tax examinations abroad and industry- wide exchange of information. These forms of administrative assistance are described as under: (a) simultaneous examination is an arrangement between two or more parties to examine ....
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.... simultaneously each in its own territory, the tax affairs of taxpayer(s) in which they have a common or related interest, with a view of exchanging any relevant information which they so obtain; (b) tax examination abroad allows for the possibility to obtain information through the presence of representatives of the competent authority of the requesting Contracting State. To the extent allowed by its domestic law, a Contracting State may permit authorised representatives of the other Contracting State to enter the first Contracting State to interview individuals or examine a person's books and records - or to be present at such interviews or examinations carried out by the tax authorities of the first Contracting State — in accordance with procedures mutually agreed upon by the competent authorities. Such a request might arise, for example, where the taxpayer in a Contracting State is permitted to keep records in the other Contracting State. This type of assistance is granted on a reciprocal basis. Countries' laws and practices differ as to the scope of rights granted to foreign tax officials. For instance, there are States where a foreign tax official will be ....
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....prevented from any active participation in an investigation or examination on the territory of a country. There are also States where such participation is only possible with the taxpayer's consent; (c) industry-wide exchange of information is the exchange of tax information especially concerning a whole economic sector (e.g. the oil or pharmaceutical industry, the banking sector, etc.) and not taxpayers in particular. 2.5.2 Many of India's DTAAs, as also all the TIEAs, have specific provisions for Tax Examination Abroad under which one country/jurisdiction may allow representatives of the competent authority of the other country/jurisdiction to enter its territory to interview individuals and examine records with the written consent of the persons concerned. Further, at the request of the competent authority of one of the countries/jurisdictions, the competent authority of the other may allow representatives of the first-mentioned competent authority to be present at the appropriate part of a tax examination in the other country/jurisdiction. Manual on Exchange of Information 9 2.5.3 Article 8 of the Multilateral Convention provides for simultaneous tax examinations....
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.... while Article 9 of the Multilateral Convention provides for tax examination abroad and thus these forms of administrative assistance are specifically covered under the Convention. 2.6 Joint Audits 2.6.1 Under the provisions of tax treaties, Joint Audits are also possible which can be described as two or more countries joining to form a single audit team to examine an issues or transactions concerning one or more related taxable persons (legal entities or individuals) having cross-border business activities or cross-border transactions involving related affiliated companies in the participating countries, and in which the countries have a common or complementary interest. In such cases, the taxpayer makes joint presentations and shares information with the countries jointly, and the investigating team includes Competent Authority representatives from each country. 2.6.2 The legal framework for conducting joint audits are the DTAAs and Multilateral Convention and the procedure for carrying out the same is described in the 2010 report on "Joint Audit" by the Forum on Tax Administration of the OECD. 2.7 Service of Documents 2.7.1 Under the Multilateral Convention and t....
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....he SAARC Multilateral Agreement, the Contracting States/Parties have an obligation for "service of documents" including those relating to judicial decisions, which emanate from the applicant State and which relate to a tax covered by this Convention/Agreement. The aim of these provisions is to ensure, as far as possible, that documents such as notices of assessment or tax demand actually reach the taxpayer, in order to avoid enforcement steps being taken against a taxpayer who is genuinely unaware of the tax proceedings or claims against him. 2.7.2 The Multilateral Convention and its Commentary, however, make it clear that notices of assessment, tax demands or other documents may, in the first instance, be sent to the taxpayer abroad by post or may be served on its representative in the jurisdiction. The administrative assistance for "service of documents" should be sought only in cases where a country regards the sending by post of official documents by another country to its residents as an infringement of its sovereignty or if there is genuine concern that the documents will not be delivered by post or could not be served on the authorized representative. 2.7.3 The....
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....re are no specific provisions for service of documents under the DTAAs and TIEAs. 2.8 Automatic Exchange of Information 2.8.1 Automatic Exchange of Information (AEOI) is the systematic and periodic collection and transmission of “bulk†taxpayer information by the source country to the country of residence of the taxpayer, without the latter country having to make a request for the same. The exchange of information by way of AEOI is permitted under the provisions of DTAAs (unless specifically prohibited) and under the Multilateral Convention. 10 Manual on Exchange of Information 2.8.2 Many countries, including India, have been exchanging information automatically under the DTAAs and Multilateral Convention with their treaty partners. However, as such exchange of information was not obligatory; there was no uniformity in the nature and type of information exchanged and further, there were no standards on the periodicity of exchange or on the technical solutions to be utilised for collection and transmission of information. Thus, the information exchanged automatically, was often of limited utility to the receiving country. 2.8.3 There is also a growing inte....
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....rnational consensus that the problem of offshore tax evasion and avoidance can be addressed only if relevant information is exchanged on a bulk basis freely and automatically. 2.8.4 To address these issues, a single uniform and global standard, known as "Common Reporting Standard for Automatic Exchange of Information (CRS on AEOI) has been developed by G20 and OECD countries. The CRS on AEOI has been endorsed by the G20 is countries, including India, who have also given a call for its global implementation on a fully reciprocal basis by 2017 or 2018. 2.8.5 The CRS on AEOI requires the financial institutions of the "source" jurisdiction to collect and provide information to their tax authorities about taxpayers "resident†in other jurisdictions, for transmission of the information on a bulk basis to the tax authorities of those resident jurisdictions. The CRS on AEOI have been designed with a broad scope across the following three dimensions to ensure that meaningful information is exchanged automatically: (a) The financial information to be reported includes all types of investment income (including interest, dividends, income from certain insurance contracts an....
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....d other similar types of income) and also includes account balances and sales proceeds from financial assets. (b) The financial institutions that are required to report under the CRS do not only include banks and custodians but also other financial institutions such as certain brokers, collective investment vehicles and insurance companies. (c) The accounts that need to be reported include accounts held by individuals and entities, including trusts and foundations, and the standard includes a requirement to look through passive entities, such as shell companies and trusts, to report on the individuals that ultimately control these entities. 2.8.6 The tax authorities of the recipient country would be able to match the information so received with the information available in its databases, e.g., information submitted by taxpayers in their tax returns about the financial assets held abroad either in their own name or as beneficial owners and non-compliance will be identified. 2.8.7 The CRS on AEOI, when fully implemented on a global basis, would enable India to receive information from every country in the world, including from offshore financial centres and tax havens....
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.... and would be the key to prevent international tax evasion and avoidance. Manual on Exchange of Information 11 2.9 Summary of Administrative Assistance under different Tax Treaties The possible forms of administrative assistance under the different kinds of tax treaties are summarized below: Types of administrative assistance expressly mentioned or permitted under the treaties DTAAS OECD Multilateral based on Model Convention SAARC Multilateral OECD/UN TIEA Agreement Model Tax Convention Exchange on Request Yes Yes Yes Yes Assistance in Collection of Taxes Yes No Yes Yes Spontaneous Exchange of Information Yes No Yes Yes Simultaneous Examination Yes No Yes Yes Tax Examination Abroad Yes Yes Yes Yes Industry Wide Exchange of Information Yes No Yes Yes Joint Audits Yes No Yes Yes Service of Documents No No Yes Yes Automatic Exchange of Information Yes No Yes Yes 12 Manual on Exchange of Information CHAPTER-III GUIDELINES FOR MAKING REQUEST FOR EXCHANGE OF INFORMATION 3.1 Introduction and Legal Basis 3.1.1 Under the provisions of the tax treaties, the Competent Authorities are obliged to exchange information whi....
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....ch is foreseeably relevant: (a) for carrying out the provisions of the Tax Convention (in case of DTAAs) or (b) for the administration and enforcement of domestic laws concerning taxes imposed by the Contracting States (in case of DTAAS, TIEAS, Multilateral Convention and SAARC Multilateral Agreement). 3.1.2 The tax authorities during inquiry or investigation may require information which is available in a country/jurisdiction outside India, for instance in the following cases: (a) Assessing Officer making an inquiry for the purpose of obtaining full information in respect of the assets, income or loss of any person. (b) Officers of the Investigation Wing carrying on further inquiry or investigation on the basis of evidence found in a search and seizure operation. (c) The Transfer Pricing Officer (TPO) seeking further information on the functions performed, assets utilised and risks assumed by the respective associated enterprises, for the purposes of determining the Arm's Length Price. (d) Officers of the International Taxation Wing determining the correctness of the withholding taxes reported in Form 15CA as payable under section 195 of the Income-tax Act. (e) Inq....
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....uiry by Commissioner (Appeals) or Dispute Resolution Panel (DRP) either directly or through directions to the Assessing Officer, for the purposes of deciding appeals or objections. 3.1.3 Such inquiry/investigation may be necessary for carrying out the provisions of the DTAAS or for the administration and enforcement of the Income-tax Act, but may not be possible in normal course since the powers of Income-tax Authorities cannot be exercised beyond India's territorial jurisdiction. In such cases, the information/evidence can be gathered by making a request to foreign authorities under the provisions of tax treaties. 3.1.4 This request can be made through the Indian Competent Authority to the foreign Competent Authority under the provisions of the relevant tax treaty. The foreign Competent Manual on Exchange of Information 13 Authority will be obliged to collect the information either directly or through the concerned tax and other authorities. The information so collected will then be transmitted back to the Indian Competent Authority and, in turn, forwarded to the income tax authorities concerned. 3.1.5 Since the facts relating to the inquiry/investigation are in the....
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.... knowledge of the tax authorities, it is desirable that the request for information be drafted by them. With a view to assist the authorities in this and to ensure that the request contains all necessary particulars, a Proforma (Form A - see Appendix) for making the references has been devised, based on a template formulated by the OECD/Global Forum. The Proforma should be filled up by the Principal Commissioner of Income Tax/Principal Director of Income Tax/Commissioner of Income Tax/Director of Income Tax (hereinafter referred to as "CIT/DIT") concerned and forwarded to the Indian Competent Authority for onward transmission to the foreign Competent Authority. 3.1.6 As stated above, the tax treaties oblige information to be exchanged for the purposes of implementing the DTAA or for the administration and enforcement of the domestic tax law. These are discussed in more detail in the following paragraphs. 3.2 Exchange of Information for Carrying out Provisions of the DTAAS 3.2.1 In some of the old DTAAs, for example the DTAA between India and Switzerland before its revision with effect from 7th October, 2011, the administrative assistance by way of Exchange of Informat....
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....ion, was limited to information required for carrying out the provisions of the treaty. It was not available for obtaining information in the course of assessment or investigation or for other purposes under the domestic tax law. While concerted efforts were made to amend such DTAAs to bring them in line with present international norms, a few DTAAs still have the old provisions pending such revision. 3.2.2 It is important to note, however, that administrative assistance for carrying out the provisions of the treaty would also be quite useful in many cases, particularly for the officers posted in the International Taxation Directorate and information can be requested from our treaty partners under the provisions of these old tax treaties also. The Commentary to Article 26 of the OECD Model Tax Convention provides the following illustrative examples where requests could be made under DTAAs for carrying out the provisions of the DTAAs: (a) When applying Article 12, State A where the beneficiary is resident may ask State B where the payer is resident, for information concerning the amount of royalty transmitted and the tax withheld. (b) Conversely, in order to grant the ....
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....exemption or lower rate of withholding provided for in Article 12, State B asks State A whether the recipient of the amounts paid is in fact a resident of State A and the beneficial owner of the royalties. (c) Information may be needed for making a proper allocation of taxable profits between associated enterprises or for adjustment of the profits shown in the accounts of a permanent establishment in one State and in the accounts of the head office in the other State (Articles 7, 9, 23 A and 23 B). 14 Manual on Exchange of Information (d) Information may be needed for the purposes of applying Article 25 on Mutual Agreement Procedure. (e) When applying Articles 15 and 23 A, State A, where the employee is resident, informs State B, where the employment is exercised for more than 183 days, of the amount exempted from taxation in State A. 3.2.3 Thus, useful information can be received even where the request is made on the grounds of implementing the provisions of the DTAA. For example, if interest or royalty is paid to a person in a country with which India has a DTAA laying down a lower rate of withholding and if the information received from that country under Exchan....
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....ge of Information demonstrates that the person is not the beneficial owner of the interest or royalty, the lower rate of withholding would not be applicable. The amount and rate of withholding applied by the Indian taxpayer and reported in Form 15CA can thus be checked by verifying the beneficial ownership utilising the provisions of the tax treaties. 3.2.4 These provisions can also be used in transfer pricing or for the purposes of examining the mismatch in the quantum or nature of payment made by a permanent establishment to its head office. 3.3 Exchange of Information for Administration and Enforcement of Domestic Laws 3.3.1 Introduction In all the new or modified treaties since 2009 as also in the Multilateral Convention and SAARC Agreement, the administrative assistance by way of Exchange of Information is possible not only for carrying out the provisions of the treaties but also for administration and enforcement of domestic laws of the requesting Contracting State/Party. Possibility of exchange of information for the purposes of the administration and enforcement of domestic laws has significantly enhanced the level of administrative assistance which is possib....
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....le under the tax treaties. Para 8 of the Commentary to Article 26 of the OECD Model Tax Convention (enclosed at Annexure-B) provides illustrative examples for making requests under the tax treaties for administration and enforcement of domestic laws. 3.3.2 Nature and Type of Information Available in Countries/Jurisdictions outside India that may be Requested 3.3.2.1 Substantial information would be available in a country/jurisdiction outside India, which may be of relevance to the tax authorities for carrying out the provisions of the DTAA or for the purposes of tackling tax evasion and avoidance in India. Under the international standards, countries/jurisdictions are required to compulsorily maintain identity and ownership information, accounting information and banking information. The nature and type of information that can be requested under the provisions of tax treaties, particularly for the purposes of assessment and investigation, can be broadly categorized as follows: Manual on Exchange of Information 15 (a) Identity and Ownership Information in case of Legal Entities and Arrangements Name and address of the legal entities (such as companies and partnership....
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....) or arrangements (such as trusts) at the time of formation and all subsequent changes in name and address Documents demonstrating formation of the legal entity or arrangement and documents relating to subsequent changes of shareholders/partners Documents identifying bearer shares Adequate, accurate and up to date information on legal and beneficial owners and other stakeholders In case of legal ownership, information about persons in the ownership chain to the extent that information is held by the jurisdiction's authorities or is within the possession or control of persons within the jurisdiction's territorial jurisdiction. If the legal owner acts on behalf of any other person as a nominee or under a similar agreement, information about that other person Information about beneficial ownership as per FATF recommendations wherein the beneficial owner refers to the natural person(s) who ultimately owns or controls the legal entity or the legal arrangement and include the natural person on whose behalf a transaction is being conducted, including those persons who exercise ultimate effective control over the legal entity or arrangement. In the case of legal or benefi....
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....cial owners, the risk assessment parameters utilised by the jurisdiction to identify the person In the case of trusts or other legal arrangements, information which identifies the settler, trustee and beneficiaries of express trusts (i) created under the laws of that jurisdiction (ii) administered in that jurisdiction, or (iii) in respect of which a trustee is resident in that jurisdiction. (b) Accounting Information Accounting records in case of an entity or arrangement including its balance sheet and profit and loss account Underlying documents of the accounting records such as invoices, contracts etc. reflecting details of (i) all sums of money received and expended and the matters in respect of which the receipt and expenditure takes place (ii) all sales and purchases and other transactions and (iii) the assets and liabilities of the relevant entity or arrangement Copies of contracts/agreements for sale/purchase Details of loans or gifts given by the taxpayer in that country/jurisdiction to an Indian taxpayer 16 Manual on Exchange of Information<BR> News - Press release - PIB....