On Thursday India signed a deal with Bermuda, the Caribbean tax sanctuary under which information will be exchanged regarding tax evasion between the two nations

Under the agreement dubbed the Tax Information Exchange Agreement (TIEA) all destinations and countries reckoned as tax sanctuaries have to keep conformity with guidelines provided by OECD and share information.

S. S. Palanimanickam, the minister of state for finance and Ewart Brown, the Premier of Bermuda signed the pact under which both India and Bermuda will be sharing information regarding ownership, banking and tax matters of the past.

The country signed the deal with Bermuda which is the first amongst many in a series of such kind of deal.

According to officials of the tax department there are at least eight other tax sanctuaries with whom the pact of such a kind has been settled and the deal will soon be squared up. The countries are British Virgin Islands, Isle of Man, Jersey, Bahamas, St Kitts&Nevis, Monaco, Argentina and Cayman Islands.

An official of the department said that under such a deal with Bermuda. Indian government can track down some transactions done by businessmen who kept a low profile but believed to have drawn off forty thousand crores of rupees from the country.

Likewise it is believed that there are some cases of the Indian Premier League with which Bermuda is connected. Bermuda is a country just off the American coast in the North Atlantic Ocean.

The treaty comes with a number of safeguards. Any information that is sought by a country must have relevance with the enforcements and administration of the country’s law. Moreover the country which seeks the information has to provide detail which will justify the significant criteria. All informations should be kept secret and can only be divulged to specified people, tax authorities or the body that supervises it.