The deal was completed in Bern, Switzerland, on March 28 by Chitra Narayanan, the Indian Ambassador in Switzerland, and her Liechtenstein counterpart Doris Frick. It is based on international standards of transparency and the exchange of information.
Once the TIEA has entered into force, information pertaining to taxable periods beginning on or after April 1, 2013 can be exchanged. It also provides for representatives of the requesting authority to enter the other territory to interview individuals and examine records, and contains specific provisions relating to providing banking and ownership information.
There are provisions for protecting the confidentiality of any information obtained. This information is to be treated as secret, and can be disclosed only to tax authorities or their oversight body. Only with the express consent of the supplying authority can the information be used for other purposes.
The TIEA will enter into force once the necessary domestic arrangements have been made in both India and Liechtenstein.