CURRENT AFFAIRS

Detailed explanation-1: -India and Switzerland sign bank information sharing deal.

Detailed explanation-2: -The purpose of Tax Information Exchange Agreements (TIEA) is to promote international co-operation in tax matters through exchange of information. It was developed by the OECD (Organisation for Economic Co-operation and Development) Global Forum Working Group on Effective Exchange of Information.

Detailed explanation-3: -Automatic exchange of information is the systematic and periodic transmission of tax information by countries to the residence country concerning various categories of income, such as dividends, interest, gross proceeds, royalties, salaries, pensions, etc.

Detailed explanation-4: -Automatic Exchange of Information is the systematic and periodic collection and transmission of “bulk” taxpayer information by the source country to the country of residence of the taxpayer, without the latter having to make a request for the same.

Detailed explanation-5: -Exchange of information (EOI) is the cross-border sharing of taxpayer information by tax administrations. A tax administration may ask for specific information on a particular case from another jurisdiction. When this happens, it is known as EOI on request.