The OECD, such as India, will bring new international tax standards, to promote the exchange of information, and to fight against tax evasion and money laundering.
The Indian government's efforts to ensure the automatic exchange information on tax evasion and black money seem to have resonated globally. The Organization for Economic Cooperation and Development (OECD) is considering amendments to international standards, which could allow countries to obtain bank details with retroactive effect.
"We have set up a committee to examine changes in international standards "said Jeffrey Owens, Director of Policy and Tax Administration of the OECD.
M. Owens said the Financial Action Task Force also plans to order that the tax offenses are criminal offenses, by June 2012, making the prosecution of offenders much easier to tax worldwide.
The Indian Finance Secretary, RS Gujral, has again raised the issue of making the tax information exchange more efficient by changing rapidly the international standard. The OECD prepares the model agreements that countries will be asked to sign. New Delhi has repeatedly claimed that the exchange of information is more effective at various global forums, including the G-20.
"It is necessary to change the international standard because it does not provide for sharing of banking information on a retroactive basis," said Gujral.
"About 10 countries have provided information automatically," he said, adding that efforts would take some time to produce results. The countries are Mauritius, France, Germany and Denmark, among others.
However, Mr. Gujral has clearly indicated that the information should be shared on a confidential basis. India has amended 75 conventions of double taxation signed 17 new agreements and exchange of tax information.
In recent months, the Indian government has faced severe criticism from the Opposition and civil society not being able to control the flow of black money in the economy. "We got some information from Mauritius for investors for some dishonest action will be taken," said Mr Gujral.
In terms of the treaty of double taxation between India and Mauritius, Mr Gujral said that the country has agreed to continue the dialogue. "They agreed to resume dialogue. Let's see how it goes," he said. According to the tax treaty, capital gain is taxed in Mauritius and the tax rate is zero, which bothers many Indian officials. They argue that India has suffered a shortfall of $ 600 million because of this tax.