Disclosure of taxpayer information received under EOI mechanism - Income Tax - F. No.414/01/20l7-IT(lnv.l)

F. No.414/01/20l7-IT(lnv.l) Government of India Ministry of Finance Central Board of Direct Taxes Room No.269, North Block, New Delhi, dated 3rd August, 2017 . OFFICE MEMORANDUM Sub : Disclosure of taxpayer information received under EOI mechanism 1. Central Board of Direct Taxes (CBDT) has received some news articles published in the Indian Express on the investigations into Panama Paper leaks as forwarded by Jersey and Cayman Island Competent Authorities, which seem to indicate violation of confidentiality provisions of tax treaties. The news reports were also found to contain extracts of the submissions made during Multi-Agency Group (MAG) meetings apart from references to details of information received from foreign jurisdictions by India tax authorities. Similar violations have been observed earlier in other cases as well. 2. In this regard, it is submitted that sharing of information received through Exchange of Information (EOI) under DTAA/TIEA/MLAT etc. with the media, either intentionally or by accident, is a serious matter and may lead to unfavourable outcomes for India which may include Suspension/revocation of tax treaty by the concerned jurisdiction, multilateral action by bodies like Global Forum and bad rating during review of India by the Global forum etc. 3. It is also submitted that ensuring confidentiality of taxpayer s information has always been a fundamental cornerstone of tax systems and is also essential for continued assistance by our treaty partners. It is therefore in our interest that the information received through the tax treaties should be kept confidential and used and disclosed only as per the terms of the relevant agreement with the concerned countries. 4. In view of the above, the undersigned is directed to request that the Officers of investigation Division may ensure that no inappropriate disclosure of any confidential/secret treaty information is made, either intentionally or by accident etc. Necessary steps in that regard may be taken. The detailed guidelines in this regard, as already available in the EOI Manual may also be seen. (Mritunjaya Sharma) DCIT(OSD)(Inv.I)