The Cabinet today approved the ratification of the third protocol between India and New Zealand for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the ratification and entry into force of the third protocol to the convention between the two countries for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, a statement said.
The protocol was signed on October 26, 2016.
Also Read
"The protocol will stimulate the flow of exchange of information between India and New Zealand for tax purposes which will help curb tax evasion and tax avoidance.
"It will also enable assistance in collection of tax revenue claims between both countries," it said.
An Article on Exchange of Information of the existing Convention has been replaced with a new one in the protocol, in line with the international standard for exchange of information.
Also, a new Article on Assistance on Collection of Taxes has been added, the release said.
The protocol will kick in on the date of notification of completion of the procedures required by the respective laws of the two countries.
The convention came into force in December 1986 and was amended through a First Protocol in 1997 and a Second Protocol in 2000.
Subsequently, India proposed to further amend the Convention through a Third Protocol to update the Exchange of Information Article as per the international standard and insert an Article on Assistance in the Collection of Taxes.
Accordingly, negotiations were held with New Zealand and an agreement was reached on both the Articles of the Third Protocol.
Disclaimer: No Business Standard Journalist was involved in creation of this content
