Global economic body Organisation for Economic Cooperation and Development (OECD) today unveiled a new mechanism to combat the menace of offshore tax evasion, a protocol to which India is a signatory.
"The OECD will formally present the standard for the endorsement of G20 finance ministers during a February 22-23 meeting in Sydney in Australia," the world body, whose economic policies are followed by over 120 countries, said in a statement.
"The G20 invited the OECD to develop a global standard on automatic exchange of information in 2013 and remains the driving force behind the move toward greater tax transparency worldwide," it said.
India has already signed the OECD's global standard for automatic exchange of information between tax authorities two years back and once the new format is implemented, the country will follow the new protocols envisaged in it.
A senior Finance Ministry official in New Delhi said the new protocols are aimed to smoothen the automatic exchange procedures which are used to crack cases of offshore tax evasion and illegal stashing of money.
"Developed by the OECD together with G20 countries, the standard calls on jurisdictions to obtain information from their financial institutions and exchange that information automatically with other jurisdictions on an annual basis," the OECD said.
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