India signs OECD agreement

Paris, June 8: Another step has taken by the Indian government to curb tax evasion. India has signed the Organisation for Economic Co-operation and Development (OECD) Multilateral Convention.

The treaty is aimed to prevent shifting of profits by companies to low-tax nations to avoid paying taxes. The Multilateral Convention mainly relates to measures that should be taken under Base Erosion and Profit Shifting (BEPS) was signed by Finance Minister Arun Jaitley.

Finance Minister on Wednesday said that India would commit itself to cooperate in the global efforts to tackle aggressive tax planning. Jaitley is on a four-day visit to Paris to participate in the OECD meetings.

Currently, 68 countries have signed the agreement. The Convention is an outcome of the OECD/G20 BEPS project. The treaty covers many aspects which plug some of the loopholes used by companies to avoid tax based on the permanent establishment.