New Delhi [India], Mar 17 : The Ministry of Finance (MoF) on Tuesday notified that agreement signed between the Government of India and the Government of Brunei Darussalam over the exchange of information and assistance in collection with respect to taxes.
"The Agreement between the Government of the Republic of India and the Government of Brunei Darussalam for the exchange of information and assistance in collection with respect of taxes (hereinafter referred to as the Agreement), was signed in New Delhi, India on 28th of February, 2019. The Agreement has been notified in the Gazette of India (Extraordinary) on 9th of March 2020," the Central Board of Direct Taxes, Ministry of Finance said in a statement.
It has been signed to minimize cases of tax evasion and tax avoidance in both countries, the ministry said.
The agreement enables "exchange of information, including banking and ownership information, between the two countries for tax purposes."
It is based on international standards of tax transparency and exchange of information and enables sharing of information on request as well as automatic exchange of information. The Agreement also provides for representatives of one country to undertake tax examinations in the other country. Moreover, it provides for assistance in collection of tax claims, the statement read.
"The Agreement will enhance mutual co-operation between India and Brunei Darussalam by providing an effective framework for exchange of information in tax matters which will help curb tax evasion and tax avoidance," it added.
( With inputs from ANI )