Briefly explain the following subjects in the context of International Taxes : (ii) Exchange Controls.

(ii) Exchange Controls Exchange control and tax clearances may be used by countries as anti-avoidance measures on cross-border transactions. These transactions are subject either to prior government approvals or post transaction reporting thereof. Many countries (mostly developing countries) has a partial or full exchange control. E.g. in India all capital account transactions under FEMA are not freely allowed unless provided otherwise and all revenue account transactions are freely allowed, unless provided otherwise.