Exchange of Information & Collection of Taxes - including Multilateral Agreements

Exchange of Information & Collection of Taxes - including Multilateral Agreements Bombay Chartered Accountants Society 16th Intensive study course on Double Tax Avoidance Agreements 16th January, 2016 Anil Doshi

Overview • Article 26 - Exchange of Information [EoI] under the Model Conventions on Income and on Capital • Tax information Exchange Agreements [TIEAs] • The Multilateral Convention on Mutual Administrative Assistance in Tax Matters [CoMAA] • Automatic Exchange of Information [AEoI] • Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information [MCAA] • EoI under Other Agreements/Forums/Authorities • Article 27 - Assistance in the Collection of Taxes under the Model Conventions on Income and on Capital 16-01-2016

Brief outline of nine major sources of EoI of various kinds 16-01-2016

Overview A. Exchange of Information [EoI] Article under the Model Conventions on Income and on Capital • The Draft OECD Model was first developed on 1963 which contained Article on EoI. • Until 8th Edition released in 2010 Art 26 of the OECD Model Convention contained the pre-updated version of Art 26 • On 17th July, 2012 Update to Art 26 and its commentary was approved by OECD Council which extensively revised the commentary on Art 26. • In the update, in para 2 of Art 26 the following sentence was added: “Notwithstanding the foregoing, information received by a Contracting State may be used for other 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.” 16-01-2016

Overview • Most of the India’s DTAAs signed before July 2012 contain pre-updated Art 26 and DTAAs signed after July 2012 contain updated Art 26. • There are three main forms of EoI (On Request, Automatic and Spontaneous) • Para 9 of the Commentary on Art 26 provides that all three main forms of EoI are covered by the Art. • Many of India’s DTAAs have been amended in recent past by way of Protocols to incorporate the updated EoI Article. 16-01-2016

Overview “Article 26 - Exchange of Information 1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.” 16-01-2016

Overview Article 26 – Para 1 • Covers all kind of taxes [Generally except Customs duties] • Creates an obligation for EoI - Mainly in three different ways: • On Request – request for foreseeably relevant information relating to examination, inquiry or investigation of a tax payer’s tax liability for specified tax years • Automatic – involves the systematic and periodic transmission of Bulk tax payer information by the countries concerning various categories of income e.g. Dividends, Interest, Royalties, Salaries, Pensions, Capital gains etc. • Spontaneous EoI – Information is exchanged spontaneously when one of the contracting parties having obtained information in the course of administering its own tax laws, which it believes will be of interest to one of its treaty partners for tax purposes and passes on this information without the latter having asked for the same. 16-01-2016

Overview Article 26 – Para 1 • Other three techniques of EoI • Simultaneous tax Examination – is an arrangement by two or more countries to examine simultaneously and independently, each on its territory, the tax affairs of taxpayer(s) in which they have a common or related interest with a view to exchanging any relevant information which they so obtain. • Tax Examination Abroad – permit authorised representatives of the other Country to enter in its territory: • 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—in accordance with procedures mutually agreed upon by the competent authorities. • Industry-wide EoI – EOI concerning a whole economic sector (e.g. oil, pharma, banking etc.) and not taxpayers in particular. 16-01-2016

Overview - Article 26 – Para 1 • Foreseeably Relevant It is intended to provide for EOI on the tax matters to the widest possible extent and that the Contracting States are not at the liberty to request information about particular taxpayers that is highly unlikely to be relevant to the tax affairs of the taxpayer. Comptroller of Income Tax v BJY & Ors. - High Court of Singapore – date of decision 13th Sep 2013 [2013] SGHC 173 Facts: CA of India made an EOI request to CA, Singapore re activities of a company BJX who was running a Ponzi-like scheme in India with another SingCo. BJX had appointed three Indian Cos to collect the monies from this operation in India. The money collected was then allegedly paid into BJX’s Singapore bank accounts. The three Indian companies were considered by the CA, India to constitute PEs for BJX in India. 16-01-2016

Overview - Article 26 – Para 1 • Foreseeably Relevant Issue: Application to court u/s 105J of IRA and Notice to BJX. Opposition by BJX. Issue of Foreseeably relevant & Business Secrets Held: The information sought was foreseeably relevant as the bank account statements would allow for the movement and amount of moneys transferred to be traced. The account opening documents would allow the Competent Authority of India to investigate the identity of the person behind BJX to see whether that person had infringed Indian tax laws in connection with the alleged Ponzi-like scheme. 16-01-2016

Overview - Article 26 – Para 1 - Fishing Expedition • Fishing Expedition The Contracting States are not required to provide administrative assistance and exchange information in cases of “fishing expedition”, i.e., speculative requests that have no apparent nexus to the inquiry or investigation in the requesting State. Illustrations re “fishing expedition”: • Bank B is a bank established in State B. State A taxes its residents on the basis of their worldwide income. The competent authority of State A requests that the competent authority of State B provide the names, date and place of birth, and account balances (including information on any financial assets held in such accounts) of residents of State A that have an account with, hold signatory authority over, or a beneficial interest in an account with Bank B in State B. The request states that Bank B is known to have a large group of foreign account holders but does not contain any additional information. 16-01-2016

Overview - Article 26 – Para 1-Fishing Expedition • Company B is a company established in State B. State A requests the names of all shareholders in Company B resident of State A and information on all dividend payments made to such shareholders. The requesting State A points out that Company B has significant business activity in State A and is therefore likely to have shareholders resident of State A. The request further states that it is well known that taxpayers often fail to disclose foreign source income or assets. • Group Requests Para 5.2 of the Commentary states that for a group request not to be a “fishing expedition”, it is necessary that the requesting State provide a detailed description of the group and the specific facts and circumstances that have led to the request, an explanation of the applicable law and why there is reason to believe that the taxpayers in the group in respect of whom information is requested have been non-compliant with that law, supported by a clear factual basis. 16-01-2016

Art 26 cont’d… Art 26 Para 2 – Restrictions on EoI 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or 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. Notwithstanding the foregoing, information received by a Contracting State may be used for other 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. 16-01-2016

Art 26 cont’d… Art 26 Para 2 – Restrictions on EoI - Confidentiality • Any information received by the Requesting State shall be kept Secret • Shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the • assessment or collection of, • the enforcement or prosecution in respect of, • the determination of appeals - in relation to the taxes • Ram Jethmalani and Others vs. UoI and Others - [2011] 13 Taxmann.com 189 (SC) 16-01-2016

Art 26 cont’d… Para 3 – Limitations to EOI In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 16-01-2016

Art 26 cont’d… Para 4 – Obligation to provide EoI in certain cases “If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.” • Provides for exclusion of vested interest subject to limitation of para 3 16-01-2016

Art 26 cont’d… Para 5 – Not permissible to decline information “In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.” • Paragraph 5 overrides paragraph 3 to the extent that paragraph 3 would otherwise permit a requested Contracting State to decline to supply information on grounds of bank secrecy • Interests in a person – would include companies and partnerships, foundations or similar organisational structures • Information requests cannot be declined merely because domestic laws or practices may treat ownership information as a trade or other secret. 16-01-2016

Overview - TIEAs B. Tax information Exchange Agreements [TIEAs] • The Model TIEA was released in Apr 2002, containing Two Models of Bilateral Agreements • The Model TIEA covered only EoI on Request. • A large no. of bilateral agreements have been based on Model TIEA • In June 2015, OECD approved a Model Protocol to the TIEA for the purpose of allowing Automatic and Spontaneous exchange of information under a TIEA • India has so far signed 16 TIEAs with countries with whom India has not signed a Comprehensive DTAA, namely: Argentine, Bahrain, Belize, Gibralter, Principality of Liechtenstein, Liberia, Macao SAR, Monaco, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey and Maldives. 16-01-2016

TIEAs • A typical TIEA contains the following Articles: 16-01-2016

Multilateral Agreements C. The Multilateral Convention on Mutual Administrative Assistance in Tax Matters [CoMAA] • The Convention was developed jointly by the OECD and the Council of Europe in 1988 and amended by Protocol in 2010. • The Convention is the most comprehensive multilateral instrument available for all forms of tax cooperation to tackle tax evasion and avoidance, a top priority for all countries. • The Convention was amended to align it to the international standard on exchange of information on request and to open it to all countries • The amended Convention was opened for signature on 1st June 2011. 16-01-2016

CoMAA • As of 17-12-15, 77 countries, including India have signed the Convention and it has been extended to 15 jurisdictions pursuant to Article 29 of the Convention. • This represents a wide range of countries including all G20 countries, all BRICS, almost all OECD countries, major financial centres and a growing number of developing countries. • The Convention has now taken on increasing importance with the G20’s recent call for AEoI to become the new international tax standard of EoI. • India signed the CoMAA on 26-1-12 which was notified on 28-8-12 and which entered into force wef 1-6-12. 16-01-2016

CoMAA Cont’d .. Benefits of the CoMAA • Scope of the Convention is broad: it covers a wide range of taxes and goes beyond exchange of information on request. • Provides for other forms of assistance such as: spontaneous exchanges of information, simultaneous examinations, performance of tax examinations abroad, service of documents, assistance in recovery of tax claims and measures of conservancy and automatic exchange of information. • Facilitates joint audits. • Includes extensive safeguards to protect the confidentiality of the information exchanged. 16-01-2016

CoMAA and AEoI D(i) - Automatic Exchange of Information • Article 6 of the Convention provides for AEoI. • Ideal instrument to implement AEoI swiftly and multilaterally. • To implement Article 6, an administrative agreement between the competent authorities of two or more interested Parties to the Convention is required. • It would address issues such as the procedure to be adopted and the information that will be exchanged automatically. • Whether sharing of information with other law enforcement authorities to counteract corruption, money laundering and terrorism financing? - Yes. 16-01-2016

CoMAA and AEoI Protection of taxpayers’ rights • CoMAA has strict rules to protect the confidentiality of the information exchanged. • Provides that information shall be treated as secret and protected in the receiving State in the same manner as information obtained under its domestic laws. • If personal data are provided, the Party receiving them shall treat them in compliance not only with its own domestic law, but also with the safeguards that may be required to ensure data protection under the domestic law of the supplying Party. • Section 138 of the Income-tax Act, 1961 – Disclosure of information respecting Assessees. 16-01-2016

CoMAA - Articles • The CoMAAcontains 32 articles. The list of Articles relating to EoI and Assistance in recovery are as under: 16-01-2016

CoMAA Cont’d …. Chapter III Section I containing Articles 4 to 10 are relevant for EoI. Article 4 - General Provision “1. The Parties shall exchange any information, in particular as provided in this section, that is foreseeably relevant for the administration or enforcement of their domestic laws concerning the taxes covered by this Convention. 2. Deleted. 3. Any Party may, by a declaration addressed to one of the Depositaries, indicate that, according to its internal legislation, its authorities may inform its resident or national before transmitting information concerning him, in conformity with Articles 5 and 7.” 16-01-2016

CoMAA Cont’d …. Article 5 - Exchange of Information on Request “1. At the request of the applicant State, the requested State shall provide the applicant State with any information referred to in Article 4 which concerns particular persons or transactions. 2. If the information available in the tax files of the requested State is not sufficient to enable it to comply with the request for information, that State shall take all relevant measures to provide the applicant State with the information requested.” 16-01-2016

CoMAA Cont’d …. Article 6 - Automatic Exchange of Information “With respect to categories of cases and in accordance with procedures which they shall determine by mutual agreement, two or more Parties shall automatically exchange the information referred to in Article 4.” Article 7 - Spontaneous Exchange of Information “1. A Party shall, without prior request, forward to another Party information of which it has knowledge in the following circumstances: a. the first-mentioned Party has grounds for supposing that there may be a loss of tax in the other Party; 16-01-2016

CoMAA Cont’d …. b. 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; c. 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 Party or in both; d. a Party has grounds for supposing that a saving of tax may result from artificial transfers of profits within groups of enterprises; e. information forwarded to the first-mentioned Party by the other Party has enabled information to be obtained which may be relevant in assessing liability to tax in the latter Party. 2. Each Party shall take such measures and implement such procedures as are necessary to ensure that information described in paragraph 1 will be made available for transmission to another Party.” 16-01-2016

CoMAA Cont’d …. Article 8 - Simultaneous Tax Examinations “1. At the request of one of them, two or more Parties shall consult together for the purposes of determining cases and procedures for simultaneous tax examinations. Each Party involved shall decide whether or not it wishes to participate in a particular simultaneous tax examination. 2. For the purposes of this Convention, a simultaneous tax examination means an arrangement between two or more Parties to examine simultaneously, each in its own territory, the tax affairs of a person or persons in which they have a common or related interest, with a view to exchanging any relevant information which they so obtain.” 16-01-2016

CoMAA Cont’d …. Article 9 - Tax Examinations Abroad “1. At the request of the competent authority of the applicant State, the competent authority of the requested State may allow representatives of the competent authority of the applicant State to be present at the appropriate part of a tax examination in the requested State. 2. If the request is acceded to, the competent authority of the requested State shall, as soon as possible, notify the competent authority of the applicant State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the requested State. 3. A Party may inform one of the Depositaries of its intention not to accept, as a general rule, such requests as are referred to in paragraph 1. Such a declaration may be made or withdrawn at any time.” 16-01-2016

CoMAA Cont’d …. Article 10 - Conflicting Information “If a Party receives from another Party information about a person's tax affairs which appears to it to conflict with information in its possession, it shall so advise the Party which has provided the information.” 16-01-2016

AEoI Contd… Main benefits of Automatic Exchange • AEoI can provide timely information on non-compliance where tax has been evaded either on an investment return or the underlying capital sum. • Help detect cases of non-compliance even where tax administrations have had no previous indications of non-compliance. • Has deterrent effects, increasing voluntary compliance and encouraging taxpayers to report all relevant information. • Help in educating taxpayers in their reporting obligations, increase tax revenues and thus lead to fairness – ensuring that all taxpayers pay their fair share of tax in the right place at the right time. • Possibility to integrate the information received automatically with their own systems such that income tax returns can be prefilled. 16-01-2016

CoMAA and OECD Standard OECD’s Standard for Automatic Exchange of Financial Account information in Tax Matters [Standard] • The Standard sets out the financial account information to be exchanged, the financial institutions that need to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions. • It consists of two components: (I) the CRS, which contains the reporting and due diligence rules to be imposed on financial institutions; and (II) the Model Competent Authority Agreement [Model CAA], which contains the detailed rules on the exchange of information. • The full version of the Standard, as approved by the Council of the OECD on 15 July 2014, also includes (III) the Commentaries on the Model CAA and the CRS, and seven annexes to the Standard. 16-01-2016

CoMAA and OECD Standard Annexes of the Standards are as follows: • the Multilateral Model CAA; • the Nonreciprocal Model CAA; the technical modalities, • the CRS schema and user guide, and • a questionnaire with respect to confidentiality and data safeguards; • the wider approach to the CRS; • the Declaration on Automatic Exchange of Information in Tax Matters; and • the Recommendation on the Standard. 16-01-2016

CoMAA and OECD Standard Implementation of Standard at domestic level • No particular timelines in the Standard. • Implementation at co-ordinated timelines would bring benefits for both business and governments. • Over 95 jurisdictions have already publicly committed to implement the Standard, either through the signing of the Multilateral Competent Authority Agreement, the G20 or the Global Forum commitment process, with first exchanges of information to occur in 2017 or 2018. • To facilitate the decision making by Global Forum members as to which jurisdictions they will automatically exchange information with, the Global Forum AEOI Group is undertaking high level assessments of the confidentiality and data safeguards of jurisdictions committed to AEOI. 16-01-2016

AEoI Contd… Implementation of Standard at domestic level • Centralising this work in the Global Forum will further assist jurisdictions in speedily implementing AEOI, by reducing the need for each jurisdiction to conduct its own assessment of the information security practices of each of the many jurisdictions committed to implementing AEOI. • The process is now underway with the first batch of around 50 assessments due to be finalised by the end of 2015 and the assessments with respect to the remaining committed jurisdictions due to be finalised by mid-2016. 16-01-2016

CoMAA and OECD Standard Confidentiality of the information exchanged • The Standard contains specific rules on the confidentiality of the information exchanged and the underlying international legal exchange instruments already contain safeguards in this regard. • Where the Standard is not met (whether in law or in practice), countries will not exchange information automatically. 16-01-2016

Foreign Account Tax Compliance Act (FATCA) • FATCA is a USA law which seeks to facilitate flow of financial information. • FATCA requires Indian banks to reveal account information of persons connected to the USA • India signed a Model 1 (reciprocal) IGA with the U.S which is notified vide Notification No. 77/2015 dated 30-9-2015. For effective implementation of FATCA, Rules 115G to 115H has been notified vide Notification no. 62/2015 dated 7-8-2015. • The IGA would require Indian financial institutions i.e. an insurance company, bank, or mutual fundto report information on U.S. account holders to India’s CBDT, which would then share the information with the U.S. IRS. • Indian Financial Institutions must report account numbers, balances, names, addresses, and U.S. identification numbers. There is punitive 30% withholding tax on any financial institution that fails to report. • The agreement would provide the IRS, access to details of all offshore accounts and assets beyond a threshold limit held by American citizens in India, while a reciprocal arrangement would be offered for Indian tax authorities as well. 16-01-2016

AEoI Contd… Main differences between the Standard and FATCA • The Standard consists of a fully reciprocal automatic exchange system from which US specificities have been removed. • It is based on residence and unlike FATCA does not refer to citizenship. • Terms, concepts and approaches have been standardised allowing countries to use the system without having to negotiate individual annexes. • Unlike FATCA, the Standard does not provide for thresholds for pre-existing individual accounts, but it includes a residence address test building on the EU savings directive. • It also provides for a simplified indicia search for such accounts. • It has special rules dealing with certain investment entities where they are based in jurisdictions that do not participate in automatic exchange under the Standard. 16-01-2016

Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information [MCAA][As at 21-12-15, 78 Countries signed. India signed on 3-6-15] 16-01-2016

Effective date re CoMAA • In the case of Multilateral Convention, obligation to provide administrative assistance in “civil tax matters” arises on or after 1 January of the year following the one in which the Convention entered into force in respect of a country/jurisdiction. • However, for tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the requesting jurisdiction, i.e., “criminal tax matters”, the obligation to exchange information extends to earlier taxable periods also. • The Parties to the Multilateral Convention can provide a reservation that they will extend administrative assistance in “criminal tax matters” only for three years prior to the entry into force of the Convention. 16-01-2016

EoI under Other Agreements / Forums / Authorities • SAARC Limited Multilateral Agreement [Comprising of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka] Article 5 - Exchange of Information • Mutual Legal Assistance Treaties [MLATs] • India has a MLAT with 38 countries • Assistance from countries with which there is no tax treaty such as Hong Kong. • Assistance only in criminal matters emanating out of proceedings under direct taxes and not for other tax enquiries. 16-01-2016

MLATs The MLATs are legal instruments through which the Contracting States agree to provide each other with the widest measures of mutual legal assistance in criminal matters. The scope of cooperation is different in different MLATs but is normally quite wide and may include the following: • Provision of information, documents and other records • Taking of evidence and obtaining of statements of persons • Location and identification of persons and objects • Execution of requests for search and seizure • Measures to locate, restrain and forfeit the proceeds and instruments of crime • Facilitating the personal appearance of the persons giving evidence • Service of documents including judicial documents • Delivery of property, including lending of exhibits • Other assistance consistent with the objects of the MLAT which is not inconsistent with the law of the requested State (catch all provision). 16-01-2016

Egmont Group of FIUs • The Egmont Group Financial Intelligence Units (FIUs) is an informal network of FIUs established with a view to have international cooperation including information exchange in the fight against money laundering and financing of terrorism • FIUs of 147 countries are part of the Egmont Group • The tax authorities may request information available with FIUs of other countries through FIU-IND (the Indian FIU) using the information exchange mechanism of the Egmont Group. 16-01-2016

Joint International Tax Shelter Information & Collaboration – JITSIC Purpose • To counter abusive tax schemes and tax avoidance structures • To examine complex cross border transactions, such as non-commercial capital and finance arrangements, aggressive transfer pricing strategies and foreign tax credit generation schemes. Member Countries of JITSIC • Australia, Canada, United Kingdom, United States, Japan, Germany, South Korea, France, China and India • Open to the Network of Forum on Tax Administration (FTA) of the OECD 16-01-2016

EoI under BEPS Project • Automatic Exchange of CbC Reports – Action 13 relating to a three-tiered standardised approach to transfer-pricing documentation • Spontaneous Exchange of Rulings – Action 5 relating to countering harmful tax practices more effectively taking into account transparency and substance • Exchange of Mandatory Disclosure Regimes – Action 12 rules for mandatory disclosure of aggressive or abusive transactions, arrangements, or structures. 16-01-2016

Illustrative examples on request under EoI • Brokerage and commission claimed to have been paid to companies located in foreign countries were found to be not for the purposes of business • Gifts from foreign persons received in the bank account of an Indian taxpayer - no capacity to make such huge amounts of gift. • Loansfrom persons in foreign jurisdictions were not found to be genuine • High Foreign Travel Exps - Indian taxpayer frequently travels abroad and spends a lot of money. Credit card statements were received from the foreign country under the EOI provisions of the treaty 16-01-2016

Illustrative examples on request under EoI • Existence of bank accounts in a number of countries, including in the name of family members - resulted in unearthing of substantial unaccounted income in the name of the taxpayer and their family members. • Undisclosed Commission received by the Indian taxpayer for services rendered in a foreign country - details received under “spontaneous exchange of information” and the same was brought to tax after making further requests under EOI. • A small amount of commission received by an Indian taxpayer in a foreign country was reported by that country under the “automatic exchange of information” route. Requests for full details of bank accounts and other information were made under the treaty and the information received disclosed substantial amount of tax evaded income. 16-01-2016

Illustrative examples on request under EoI Search & Seizure • Info about foreign bank accounts and trading in foreign commodity market – EoI resulting in unearthing of substantial amount of unaccounted income. • Info about bank accounts and immovable properties in foreign countries - Further info under EoI under DTAA showed that bank accounts and immovable properties were owned by companies located in a third country. Info requested from the third country, showed beneficial ownership by persons related to the Indian taxpayer. • Bank accountsin foreign countries were found including in the name of a trust. Info received from the jurisdiction re the trust location, showed that the beneficial owner of the trust is the Indian taxpayer. 16-01-2016

Exchange of Information & Collection of Taxes - including Multilateral Agreements