New Delhi:
As they continue their efforts to clamp down on the menace of black money, India and other countries will have to wait at least till 2017 before the new global standard for automatic exchange of tax information comes into effect.
India, Switzerland and 45 other nations had agreed upon automatic exchange of tax information, which is seen as a major step forward in global efforts against banking secrecy practices.
The endorsement of the 'Declaration on Automatic Exchange of Information (AEOI) in Tax Matters' under the aegis of think-tank Organisation for Economic Cooperation and Development (OECD) last week had paved the way for finalising a single global standard in this regard later this year in September.
"The effectiveness of AEOI will come only when the standard is translated into domestic legislations and hardware in banks' IT. This means that AEOI will take place in 2017 at the earliest," Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, told PTI from Paris.
Paris-based Organisation for Economic Cooperation and Development (OECD) sets the global tax standards and frames conventions against tax frauds, among others.
With respect to automatic exchange of tax information, he said things are at early stages in terms of developing the standard as well as "getting the commitments".