Pranab favours renegotiating treaties to break tax havens

Finance Minister Pranab Mukherjee on Friday favoured renegotiating tax treaties India has signed with many nations, saying that tax havens should be brought under "discipline".

Finance Minister Pranab Mukherjee on Friday favoured renegotiating tax treaties India has signed with many nations, saying that tax havens should be brought under "discipline".

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Asked for government's stand on black money put in Swiss Banks, he told reporters at the Women's Press Corps in New Delhi that "with a large number of countries, I have suggested renegotiation of treaties. The tax havens should be brought under some discipline".

He said the Swiss authorities had decided earlier this year to share information with those countries which follow tax model of the Organisation for Economic Cooperation and Development (OECD).

But this information will be shared for tax collection purposes and cannot be shared with public. In fact, the government got information in one such case, but it could not share it because of the international commitments, he added.

The Finance Minister said the issue of renegotiating Double Taxation Avoidance Agreement with Mauritius is also being pursued.

Mauritius, however, had stated that it has some problems in doing that since it may lose revenue, for which India had assured some compensation, he added.