India has deferred signing the proposed pact named Competent Authority Agreement (CAA) at Organization of Economic Cooperation and Development (OECD) in Berlin. The participant countries have to follow international standards of confidentiality for information received relating to black money.
The OECD said that they will begin automatically exchanging data collected by financial institutions as early as 2017.
As many as fifty-one countries signed the agreement yesterday to share financial data and boost efforts to crackdown on tax evasion. Most of the countries that signed the agreement are from European Union, besides traditional tax havens like Liechtenstein, the British Virgin Islands and the Cayman Islands.
The standard agreed upon was developed by the OECD in consultation with the world’s top 20 economies. Other countries have indicated their willingness to join the accord later. The United States has also not signed but says it will share information as part of bilateral deals.
Meanwhile, the issue of Indian untaxed money or black money stashed in the foreign account is now under judiciary pending in the Supreme Court of India.