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Amendments to Tax Avoidance Pacts with Israel, Vietnam

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On 7 th october 2015 the union cabinet approved the protocols amending tax agreements with Israel and vietnam. A movement aimed to dealing with black money.

tax-vietnam_israel

With  Israel :

  • Introduced Limitation of Benefit (LOB) in the double taxation avoidance convention.(DTAC)
  • It also  provides exchange of information on tax matters, including bank information, and information without domestic tax interest.
  • It also suggest 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.
  • LOB – This article is an anti-abuse provision aimed at preventing misuse of the convention.
  • The existing DTAC between India and Israel was signed in 1996.

To meet the internationally accepted standards ,both countries agreed to update the Article 27 on the “Exchange of Information ” in India -Israel DTAC.

With Vietnam

  • A protocol to amend the existing double taxation avoidance agreement (DTAA)
  • It guarantees the  exchange of information on tax matters, including bank information and information without domestic tax interest.