TAX NEWS - June 2010

India To Set Up Eight More Overseas Tax Units

The country has decided to establish eight more overseas tax units with the intention to fight the threat of evasion as growing cross-border trade of goods and services was throwing up novel and multifaceted challenges.

India's Finance Minister Pranab Mukherjee made this announcement during the annual conference of chief commissioners and directors general of income tax in New Delhi.

Mr. Pranab also said that the growth of tax shelter products and use of tax havens is one more challenge that exhales from globalization.

"In response to global challenges we have set up two income tax overseas units within Indian Missions in Singapore and Mauritius to facilitate exchange of information," the minister said, adding eight more such offices will come up in other countries.

"I hope these measures will result in seamless flow of tax-related information from the foreign tax jurisdictions and would strengthen our fight against menace of tax evasion using cross-border transactions."

The eight nations where the abroad tax divisions will be set up include France, UAE, USA, Britain, Netherlands, Japan, Cyprus and Germany.