India’s recent involvement in the Tax Inspectors Without Borders (TIWB) programme is a vital move towards international collaboration in tax-related matters. The programme, designed to enhance Saint Lucia’s tax administration, has selected India as the Partner Administration. Indian Tax Experts will provide guidance throughout this programme, which will span 12-18 months. TIWB, a joint initiative by the United Nations Development Programme (UNDP) and the Organisation for Economic Cooperation and Development (OECD), aims at developing Saint Lucia’s tax administration through knowledge and skill transfer. A key focus lies in implementing OECD’s Automatic Exchange of Information (AEOI) under the Common Reporting Standard (CRS) framework efficiently.
Insights Into the TIWB Program
The TIWB program is a combined effort by UNDP and OECD. Its main aim is to enhance international cooperation in tax matters. This effort comes in the form of providing tax experts to assist in various tax administration tasks. The length of these partnerships typically lasts between 12 to 18 months, with India currently stepping up to the plate to assist Saint Lucia.
India as Partner Administration
India, known for its robust tax administration, was chosen as the Partner Administration for the programme’s current phase. With this role, India will provide experienced tax experts to Saint Lucia for the coming 12-18 months. These experts will offer their extensive knowledge and technical skills to strengthen Saint Lucia’s tax administration procedures and systems.
Improving Saint Lucia’s Tax Administration
The primary goal of the TIWB program in this instance is to strengthen Saint Lucia’s tax administration. Through the exchange of expert knowledge and technical skills from the Indian tax experts, Saint Lucia can expect a significant boost in their tax administration’s proficiency. The focus is on optimising tax collection procedures, improving tax compliance, and overall enhancing the efficiency of the country’s tax administration.
The Role of OECD’s AEOI under CRS
A significant aspect of this programme lies in the vital use of the OECD’s Automatic Exchange of Information (AEOI) under the Common Reporting Standard (CRS) framework. The CRS was established in response to a request from G20 and approved by the OECD Council in 2014. This framework dictates how jurisdictions should annually exchange financial information retrieved from their institutions. From detailing the types of accounts and taxpayers to setting out due diligence procedures for financial institutions, the CRS aims to fight against global tax evasion.
The Aim of Combating Global Tax Evasion
The ultimate aim of implementing the CRS is to combat worldwide tax evasion. By mandating jurisdictions to annually exchange financial information, this can help identify unreported income and assets abroad. Consequently, this could deter individuals and entities from hiding taxable money, thereby reducing chances of tax evasion.
Future Of International Cooperation In Tax Matters
India’s participation in the TIWB program marks a great stride in international cooperation in tax matters. Through such initiatives, countries can work together to boost global efforts to prevent tax evasion and improve tax administration efficiency. With concerted efforts from different nations, effective and efficient tax systems around the globe can become a reality.
