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TMI BlogDouble Taxation Agreement - Multilateral Convention on Mutual Administrative Assistance on tax matters with oecd member countriesX X X X Extracts X X X X X X X X Extracts X X X X ..... ifies that all the provisions of the Convention for Mutual Administrative Assistance on Tax Matters, as set out in the Annexure hereto, shall be given effect to in the Union of India with effect from the 1st June, 2012, that is, the date of entry into force of the said Convention. Convention on Mutual Administrative Assistance in Tax Matters Text amended by the provisions of the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters, which entered into force on 1st June 2011. Preamble The member States of the Council of Europe and the member countries of the Organisation for Economic Co-operation and Development (OECD), signatories of this Convention. Considering that the development of international movement of persons, capital, goods and services - although highly beneficial in itself - has increased the possibilities of tax avoidance and evasion and therefore requires increasing co-operation among tax authorities; Welcoming the various efforts made in recent years to combat tax avoidance and tax evasion on an international level, whether bilaterally or multilaterally; Considering that a co-ordinated effort between States is necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the tax on income or profits, iii. taxes on net wealth, imposed on behalf of a Party; and b. to the following taxes: i. taxes on income, profits, capital gains or net wealth which are imposed on behalf of political sub-divisions or local authorities of a Party, ii. compulsory social security contributions payable to general government or to social security institutions established under public law, and iii. taxes in other categories, except customs duties, imposed on behalf of a Party, namely: A. estate, inheritance or gift taxes, B. taxes on immovable property, C. general consumption taxes, such as value added or sales taxes, D. specific taxes on goods and services such as excise taxes, E. taxes on the use or ownership of motor vehicles, F. taxes on the use or ownership of movable property other than motor vehicles, G. any other taxes; iv. taxes in categories referred to in sub-paragraph iii. above which are imposed on behalf of political sub-divisions or local authorities of a Party. 2. The existing taxes to which the Convention shall apply are listed in Annex A in the categories referred to in paragraph 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the expiration of a period of three months after the date of receipt of such notification by the Depositary in question. CHAPTER III FORMS OF ASSISTANCE SECTION I - EXCHANGE OF INFORMATION ARTICLE 4 GENERAL PROVISION 1. The Parties shall exchange any information, in particular as provided in this section, that is foreseeably relevant for the administration or enforcement of their domestic laws concerning the taxes covered by this Convention. 2. Deleted. 3. Any Party may, by a declaration addressed to one of the Depositaries, indicate that, according to its internal legislation, its authorities may inform its resident or national before transmitting information concerning him, in conformity with Articles 5 and 7. ARTICLE 5 EXCHANGE OF INFORMATION ON REQUEST 1. At the request of the applicant State, the requested State shall provide the applicant State with any information referred to in Article 4 which concerns particular persons or transactions. 2. If the information available in the tax files of the requested State is not sufficient to enable it to comply with the request for information, that State shall take all relevant mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he competent authority of the requested State may allow representatives of the competent authority of the applicant State to be present at the appropriate part of a tax examination in the requested State. 2. If the request is acceded to, the competent authority of the requested State shall, as soon as possible, notify the competent authority of the applicant State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the requested State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the requested State. 3. A Party may inform one of the Depositaries of its intention not to accept, as a general rule, such requests as are referred to in paragraph 1. Such a declaration may be made or withdrawn at any time. ARTICLE 10 CONFLICTING INFORMATION If a Party receives from another Party information about a person's tax affairs which appears to it to conflict with information in its possession, it shall so advise the Party which has provided the information. SECTION II ASSISTANCE IN RECOVERY ART ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for assistance shall give particulars concerning that period. 2. Acts of recovery carried out by the requested State in pursuance of a request for assistance, which, according to the laws of that State, would have the effect of suspending or interrupting the period mentioned in paragraph 1, shall also have this effect under the laws of the applicant State. The requested State shall inform the applicant State about such acts. 3. In any case, the requested State is not obliged to comply with a request for assistance which is submitted after a period of 15 years from the date of the original instrument permitting enforcement. ARTICLE 15 PRIORITY The tax claim in the recovery of which assistance is provided shall not have in the requested State any priority specially accorded to the tax claims of that State even if the recovery procedure used is the one applicable to its own tax claims. ARTICLE 16 DEFERRAL OF PAYMENT The requested State may allow deferral of payment or payment by instalments if its laws or administrative practice permit it to do so in similar circumstances, but shall first inform the applicant State. SECTION III SERVICE OF DOCUMENTS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ractice of the applicant State and whether it is justified in the light of the requirements of Article 21.2.g. 2. As soon as any other information relevant to the request for assistance comes to its knowledge, the applicant State shall forward it to the requested State. ARTICLE 19 DELETED ARTICLE 20 RESPONSE TO THE REQUEST FOR ASSISTANCE 1. If the request for assistance is complied with, the requested State shall inform the applicant State of the action taken and of the result of the assistance as soon as possible. 2. If the request is declined, the requested State shall inform the applicant State of that decision and the reason for it as soon as possible. 3. If, with respect to a request for information, the applicant State has specified the form in which it wishes the information to be supplied and the requested State is in a position to do so, the requested State shall supply it in the form requested. ARTICLE 21 PROTECTION OF PERSONS AND LIMITS TO THE OBLIGATION TO PROVIDE ASSISTANCE 1. Nothing in this Convention shall affect the rights and safeguards secured to persons by the laws or administrative practice of the requested State. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a requested State to decline to supply information solely because it has no domestic interest in such information. 4. In no case shall the provisions of this Convention, including in particular those of paragraphs 1 and 2, be construed to permit a requested State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. ARTICLE 22 SECRECY 1. Any information obtained by a Party under this Convention shall be treated as secret and protected in the same manner as information obtained under the domestic law of that Party and, to the extent needed to ensure the necessary level of protection of personal data, in accordance with the safeguards which may be specified by the supplying Party as required under its domestic law. 2. Such information shall in any case be disclosed only to persons or authorities (including courts and administrative or supervisory bodies) concerned with the assessment, collection or recovery of, the enforcement or prosecution in respect of, or the determination of appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich it has for the request for assistance. CHAPTER V SPECIAL PROVISIONS ARTICLE 24 IMPLEMENTATION OF THE CONVENTION 1. The Parties shall communicate with each other for the implementation of this Convention through their respective competent authorities. The competent authorities may communicate directly for this purpose and may authorise subordinate authorities to act on their behalf. The competent authorities of two or more Parties may mutually agree on the mode of application of the Convention among themselves. 2. Where the requested State considers that the application of this Convention in a particular case would have serious and undesirable consequences, the competent authorities of the requested and of the applicant State shall consult each other and endeavour to resolve the situation by mutual agreement. 3. A co-ordinating body composed of representatives of the competent authorities of the Parties shall monitor the implementation and development of this Convention, under the aegis of the OECD. To that end, the co-ordinating body shall recommend any action likely to further the general aims of the Convention. In particular it shall act as a foru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. This Convention shall be open for signature by the member States of the Council of Europe and the member countries of OECD. It is subject to ratification, acceptance or approval. Instruments of ratification, acceptance or approval shall be deposited with one of the Depositaries. 2. This Convention shall enter into force on the first day of the month following the expiration of a period of three months after the date on which five States have expressed their consent to be bound by the Convention in accordance with the provisions of paragraph 1. 3. In respect of any member State of the Council of Europe or any member country of OECD which subsequently expresses its consent to be bound by it, the Convention shall enter into force on the first day of the month following the expiration of a period of three months after the date of the deposit of the instrument of ratification, acceptance or approval. 4. Any member State of the Council of Europe or any member country of OECD which becomes a Party to the Convention after the entry into force of the Protocol amending this Convention, opened for signature on 27th May 2010 (the "2010 Protocol"), shall be a Party to the Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... territory or territories to which this Convention shall apply. 2. Any State may, at any later date, by a declaration addressed to one of the Depositaries, extend the application of this Convention to any other territory specified in the declaration. In respect of such territory the Convention shall enter into force on the first day of the month following the expiration of a period of three months after the date of receipt of such declaration by the Depositary. 3. Any declaration made under either of the two preceding paragraphs may, in respect of any territory specified in such declaration, be withdrawn by a notification addressed to one of the Depositaries. The withdrawal shall become effective on the first day of the month following the expiration of a period of three months after the date of receipt of such notification by the Depositary. ARTICLE 30 RESERVATIONS 1. Any State may, at the time of signature or when depositing its instrument of ratification, acceptance or approval or at any later date, declare that it reserves the right: a. not to provide any form of assistance in relation to the taxes of other Parties in any of the categories listed in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other Party; it may, however, if its reservation is partial, require the application of that provision insofar as it has itself accepted it. ARTICLE 31 DENUNCIATION 1. Any Party may, at any time, denounce this Convention by means of a notification addressed to one of the Depositaries. 2. Such denunciation shall become effective on the first day of the month following the expiration of a period of three months after the date of receipt of the notification by the Depositary. 3. Any Party which denounces the Convention shall remain bound by the provisions of Article 22 for as long as it retains in its possession any documents or information obtained under the Convention. ARTICLE 32 DEPOSITARIES AND THEIR FUNCTIONS 1. The Depositary with whom an act, notification or communication has been accomplished, shall notify the member States of the Council of Europe and the member countries of OECD and any Party to this Convention of: a. any signature; b. the deposit of any instrument of ratification, acceptance or approval; c. any date of entry into force of this Convention in accordance with the provisions of Articles 28 and 29; d. a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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