India notifies tax info exchange pact with Marshall Islands

India has notified a tax information exchange agreement (TIEA) with the Marshall Islands, enabling bilateral sharing of banking information and allowing officials of one country to undertake tax examinations in the other, the finance ministry said Thursday. The TIEA for exchange of information with respect to taxes was signed on March 18, 2016 at Majuro, the Capital of the Marshall Islands. India notified the TIEA on May 21, 2019.

"The agreement enables exchange of information, including banking and ownership information, between the two countries for tax purposes," a finance ministry statement said. The TIEA is based on international standards of tax transparency and exchange of information and enables sharing of information on request.

"The agreement also provides for representatives of one country to undertake tax examinations in the other country," it added. The agreement will enhance mutual cooperation between India and the Marshall Islands by providing an effective framework for exchange of information on tax matters which will help curb tax evasion and tax avoidance.

The Marshall Islands are a sprawling chain of volcanic islands and coral atolls in the Pacific Ocean, between Hawaii and the Philippines.