Tax information exchange: India seeks French aid

India has sought French support to push through its agenda of voluntary exchange of tax information to curb black money.

India has sought French support to push through its agenda of voluntary exchange of tax information to curb black money.

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Ahead of Prime Minister Manmohan Singh's visit to Cannes for the upcoming G20 summit next month, New Delhi has even sent a draft formulation for the G20 communiqué to France for its endorsement that seeks a call to international community to take a lead in voluntary exchange of tax related information.

New Delhi also wants the G20 to include new measures to clamp tax violation channels.

Finance minister Pranab Mukherjee has written a letter to French economy, industry and employment minister Francois Baroin to support India's proposal, emphasising that G20 must make a call to countries to take a lead in exchanging information automatically or voluntarily and urging other countries to do so.

Mukherjee has also said that at Cannes, New Delhi would like G20 to urge Global Forum to consider monitoring effectiveness of comprehensive exchange of information. The Global Forum on Transparency and Exchange of Information for Tax Purposes is a multilateral framework that works in the area transparency and exchange of information since 2000. New Delhi has pledged to donate Euro 3,20,000 to the body during the G20 finance ministers' meeting in Paris in October.

New Delhi will also like to see G20 urge the Global Forum to consider including provisions on assistance in tax collection as part of the international standard on exchange of information.

Mukherjee also expressed hope that with French help, New Delhi would be able to push these issues through the summit.