Taking another step towards combating black money, India has signed a multi-lateral agreement with economic powers like France and Germany to check both tax evasion and avoidance. The agreement, convention on mutual administrative assistance in tax matters, is a multilateral agreement of 31 other nations which “promotes international co-operation while respecting the rights of taxpayers.” The agreement has been signed under the aegis of the Organisation for Economic Cooperation and Development (OECD), a top global financial body, at its headquarters in Paris recently. A Finance Ministry official said the agreement was signed by CBDT official and Joint Secretary in foreign tax division of Finance Ministry, Mr Sanjay K Mishra, along with OECD Deputy Secretary General, Mr Rintaro Tamakio.“The convention provides for administrative co-operation between the parties in the assessment and collection of taxes with a view to combating tax avoidance and evasion,” an OECD statement said in this regard. By joining the agreement, India and other 31 signatories, according to OECD, “send a strong signal that countries are acting together to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place.”
 
(Source- hindubusinessline.com)