India and Belgium on 9 March 2017 signed a protocol that amends the existing agreement and protocol between the two countries for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. The protocol was signed in New Delhi.
The signed protocol will help the Union Government in its fight against the black money that is stashed in the offshore accounts. Fight against the black money has been a key priority area of the Union Government led by Prime Minister Narendra Modi.
Key Highlights of the Protocol
• It broadens the scope of the existing framework for the exchange of tax-related information.
• It will help the government to curb tax evasion and tax avoidance between the two nations.
• It will also enable mutual assistance in collection of taxes.
Signatories on behalf of the India and Belgium
• India: Sushil Chandra, Chairman Central Board of Direct Taxes (CBDT)
• Belgium: Jan Luykx, Ambassador of Belgium to India
Steps taken in the financial year 2016-17 by Government to support its fight against Black Money stashed in offshore accounts include
• During the financial year 2016-17, India has either signed or amended international agreements, declarations or conventions for the Avoidance of Double Taxation & Prevention of Fiscal Evasion with respect to Taxes on Income and for the Exchange of Information with several nations like Switzerland, Japan, Mauritius, Cyprus, Republic of Korea, Kazakhstan, Singapore and Austria.