India and Brunei collaborate to boost tax transparency by sharing information

India and Brunei Thursday signed an agreement for the exchange of banking information and assistance in tax collection. The agreement was signed by Central Board of Direct Taxes (CBDT) Chairman Pramod Chandra Mody and High Commissioner of Brunei Darussalam to India Dato Paduka Haji Sidek Ali.

In a statement, the CBDT said the Tax Information and Exchange Agreement (TIEA) enables exchange of information, including banking and ownership information, between the two countries for tax purposes. "It is based on international standards of tax transparency and exchange of information and enables sharing of information on request as well as on automatic basis. It also provides for mutual assistance in collection of tax revenue claims between both countries," the CBDT said.

The agreement will enhance mutual co-operation between India and Brunei by providing an effective framework for exchange of information in tax matters which will help curb tax evasion and tax avoidance.