Aiming to curb tax evasion and avoidance, India has operationalised the Tax Information Exchange Agreement (TIEA) with Seychelles, one of the major sources of foreign investment into the country. The agreement will enable the authorities of both nations to provide assistance through exchange of tax and banking information, which may be used to track fund flow originating from the Indian Ocean nation.
In addition, information regarding the legal and beneficial ownership of companies and partnerships can be sought. Information received under the agreement shall be treated as confidential and may be disclosed only to persons or authorities concerned after assessment, collection, enforcement, prosecution, or determination of appeals in relation to taxes covered under the agreement.
The agreement also provides for a Mutual Agreement Procedure to resolve any procedural differences. TIEA would help curb tax evasion and provides for mutual assistance between the authorities of the two countries on enforcement action against suspected tax evaders.