Tax secrecy

Tax secrecy is the legal duty that requires tax authorities to protect the confidentiality of all information obtained from taxpayers. This protection covers details such as income, financial statements, personal data, and tax filings. Disclosure of such information is tightly controlled and allowed only in situations expressly authorised by law—such as compliance with a judicial directive, cooperation in investigations of serious wrongdoing, lawful information-sharing arrangements with other countries, or when disclosure is essential for carrying out tax administration functions.

Example: A tax officer cannot share Mr. Rohan’s tax return or income information with any private individual or organization. However, if a court directs the tax department to furnish his financial data for a fraud inquiry, the officer may legally provide the information in accordance with that order.