The exchange of information agreement between the United States and India is an important development in international relations. The agreement allows the two countries to share financial information for the purpose of combatting tax evasion and promoting transparency.
The agreement was signed in June 2016 and went into effect on September 30, 2019. It is part of a larger effort by the United States to increase cooperation with foreign governments in the fight against offshore tax evasion and other financial crimes.
Under the agreement, the Internal Revenue Service (IRS) and the Indian government`s tax authority can exchange information about taxpayers. This includes information about income, assets, and other financial data. The exchange of information will be overseen by the competent authorities of both countries.
The agreement is expected to have a significant impact on multinational corporations with business operations in both countries. By sharing information about these companies, tax authorities will be better equipped to identify and address tax evasion and other financial crimes.
The agreement also represents a broader trend towards global cooperation in the fight against tax evasion. In recent years, many countries have signed similar agreements with one another, creating a more interconnected global tax system.
However, the exchange of information agreement with India is not without its challenges. Some critics argue that the agreement could be used to unfairly target certain individuals or businesses. Others have expressed concerns about data privacy and the security of the information being shared.
Despite these challenges, the exchange of information agreement represents an important step forward in the fight against tax evasion and financial crimes. By working together, the United States and India can more effectively identify and address these issues, promoting greater fairness and transparency in the global financial system.
