In a decision taken in the Cabinet meeting headed by Prime Minister Narendra Modi, India has inked an information exchange agreement on tax matters with Seychelles in order to curb tax evasion and boost its efforts to fight against black money.
Background:
As Seychelles is considered one of the preferred offshore havens for routing of funds, the Union Cabinet recently approved the signing and ratification of the taxation pact with the island nation to unearth black money.
Other Key Agreements:
- Agreements in sectors such as agricultural research and space were being signed to deepen the engagement.
- Agreement on strengthening maritime security
- An air services agreement was also signed to enable more and easier connections between the two countries.
- Agreement on cooperation in space, including in the areas of managing land and marine resources, fisheries advisory, weather forecasting and disaster management.
- Presentation of Navigational chart related to Aldabra Island.
- An agreement to gift a second Dornier aircraft to Seychelles which was announced earlier in March, 2015.
- A bilateral agreement for cooperation on blue economy.
Significance:
The agreement will enable the competent authorities of India and Seychelles to provide assistance through the exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of two countries concerning taxes. The agreement also provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on procedures.
The agreement does not have any financial implications. Only in the event of extraordinary costs exceeding US $ 500, the government of India will bear the same, as per Article 9 of the agreement.
Key Points to Remember:
- Seychelles Capital – Victoria
- Seychelles Currency – Seychellois rupee
- President of Seychelles – James Michel