Thu. Sep 24th, 2020

Amendment approved by the Cabinet to ease exchange of information between India and Israel on tax matters

1 min read

On 7-10-2015, the Union
Cabinet approved the protocol amending the Convention and the Protocol between India and Israel for
avoidance of double taxation and prevention of fiscal evasion with respect to
taxes on income and on capital. Earlier, Double Taxation Avoidance Convention
(DTAC) was signed between India
and Israel
in 1996 through which both the countries agreed to exchange information on tax
matters.

The Protocol
provides for effective exchange of information between the two countries on tax
matters without domestic tax
interest. It also provides that the information received from Israel in respect
of a resident of India can be shared with other law enforcement agencies with
authorisation of the Competent Authority of Israel and vice versa. It further
provides for ‘Limitation of Benefits’ Article to
prevent misuse of the Convention and also enables use of the provisions
of domestic law and measures concerning tax avoidance or evasion in the event
of misuse of the Convention. 

 

-Press Information Bureau
Source: Legal news India

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