India tightens screws on tax evaders to rein in fiscal deficit
The government is now all set to tighten its screws on tax evaders who park their black money into tax havens. Media report said that the government is considering a plan to blacklist those tax havens which are not willing to share information on money parked by Indians in their country, despite a tax information exchange agreement with India.
Once black-listed, Indians would find it tough to do business with those countries and will have to pay higher taxes. Media report said that countries like Switzerland, United Arab Emirates (UAE), Hong Kong, Singapore, Samoa and Seychelles are among those who haven't shared the information yet.
Though the provision came into effect from June 2011, but the government kept it quietly and didn't want to jeopardise India's relations with other countries. But now it is planning to notify this provision.