Amendments to Tax Avoidance Pacts with Israel, Vietnam

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.

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.