Multilateral Competent Authority Agreement
• The MCAA is a multilateral framework agreement that provides a standardised and efficient mechanism to facilitate the Automatic Exchange of Information (AEOI) in accordance with the Standard for Automatic Exchange of Financial Information in Tax Matters ("the Standard").
• It avoids the need for several bilateral agreements to be concluded.
• AEOI based on CRS (Common Reporting Standards)
• It always ensures each signatory has ultimate control over exactly which exchange relationships it enters into and that each signatory's standards on confidentiality and data protection always apply.
• India joined MCAA on 3rd June, 2015, in Paris. India to receive information from almost every country in the world including offshore financial centres.
• It would be instrumental in getting information about assets of Indians held abroad including through entities in which Indians are beneficial owners
• For implementation, necessary legislative changes have been made by amending Income-tax Act, 1961.
• It is a key to prevent international tax evasion and avoidance.