India and Liechtenstein Signed the Tax Information Exchange Agreement (TIEA)

India and Liechtenstein signed the Tax Information Exchange Agreement (TIEA) on 28 March 2013 at Bern, Switzerland. The agreement was signed between Indian Ambassador in Switzerland and Ambassador of Liechtenstein in Switzerland.

The primary features of TIEA were as follows:

• TIEA is based on international standard of transparency and exchange of information.
• It was decided that the information should be anticipated in context with the administration and enforcement of the domestic laws of the Contracting Parties in relation with the taxes included in the agreement.
• There was also a specific provision that the requested Party will make use of the information gathering measures to obtain the requested information, despite the fact that the Party does not need any such information for its tax purposes.
• A specific provision was incorporated in the agreement wherein it was decided that ownership and banking information shall be provided.
• The TIEA facilitates the representatives of the competent authority of the requesting Party to enter the territory of the requested Party in order to interview the individuals as well as examine the records.
• The Agreement also includes specific provisions for protecting the confidentiality of the information obtained under the Agreement. It was decided that the information has to be kept secret or should be disclosed only to specific people and authorities, which are its oversight body or tax authorities.
• The Agreement will be effective one month after the letter of notification. It is possible to exchange the information if it pertains to taxable periods beginning on or after 1 April 2013.
• TIEA additionally also facilitates exchange of documents or information created in or derived from a date preceding 1 April 2013.