The government has notified an agreement with the Marshall Islands, a country comprising a chain of volcanic islands and coral atolls in the Pacific Ocean, for the exchange of banking and company information for tax purposes. It will help curb tax evasion and tax avoidance.
Called tax information exchange agreement (TIEA), it will allow mutual co-operation between the two countries by providing an effective framework for the exchange of information in tax matters. The agreement (India-Marshall Islands TIEA) between the Indian government and the government of Marshall Islands was signed on March 18, 2016, at Majuro, the Republic of the Marshall Islands.
The bilateral agreement is based on international standards of tax transparency and exchange of information and enables the sharing of information on request. The agreement also provides for representatives of one country to undertake tax examinations in the other country.