The Union Cabinet on 7 October 2015 approved the Protocol between India and Israel and between Indian and Vietnam for avoidance of double taxation and for prevention of fiscal evasion with respect to taxes on income and on capital.
The Protocol with both the countries provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest.
With this, the information received from Israel and Vietnam in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the Competent Authority of both the countries and vice versa.
Besides, the Protocol with Israel also provides for Limitation of Benefits Article as an anti-abuse provision aimed at preventing misuse of the Convention. The provisions of this Article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the Convention.
The existing Double Taxation Avoidance Convention (DTAC) between Indian and Israel was signed in 1996 and between India and Vietnam was signed in 1994.
Both the countries concurred with India to update Article 27 on the Exchange of Information in DTAC signed with India to meet internationally accepted standards and added a new Article on Assistance in the Collection of taxes.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
When: 7 October 2015
DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.