Global efforts led by G20 countries, including India, to combat tax avoidance and evasion got a boost today with China signing a key convention to share tax records under the aegis of OECD here.
China became the 56th signatory to the agreement by signing the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. With this all the G20 nations, including India, have become official partners to combat the menace of tax crimes and evasion across international borders.
India is already a signatory to this convention and with China coming under this partnership umbrella, Asia's two largest economies have come together to tackle tax crimes with other big economic powerhouses like the US and the UK.
"The convention provides for spontaneous exchange of information, simultaneous tax examinations and assistance in tax collection," the Organisation for Economic Cooperation and Development (OECD) said in a statement here.
"A valuable tool for governments to fight offshore tax evasion, the convention also ensures compliance with national tax laws and respects the rights of taxpayers by protecting the confidentiality of the information exchanged," it said.
The OECD, world's top economic body based in the French capital, said with China joining the ranks today "G20 countries have now fulfilled the commitment they made at the Cannes G20 Summit to sign the convention and move towards automatic exchange of information as the new, global standard."
OECD Secretary General Angel Gurria called China's inclusion as an "important" and "timely" development.
