India, New Zealand sign 3rd protocol for tax avoidance

The Dollar Business Bureau 

In order to stimulate the flow of information exchange between India and New Zealand, the Cabinet has given its nod to the ratification of third Protocol to the Convention between the two countries for the double taxation avoidance and prevention of fiscal evasion.

“The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the ratification and entry into force of the third Protocol to the Convention between India and New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (Convention), said an official statement on Wednesday.

“The Protocol to the convention was inked on October 26, 2016,” it added.

The Protocol will encourage the flow of information exchange between India and New Zealand for the purposes of tax that will help in curbing tax avoidance and tax evasion. This will also enable support in collecting the tax revenue claims between the two countries, said the statement.

In the existing convention, Article 26 on 'Exchange of Information' has been substituted with a revised Article, which is in accordance with the international standards for information exchange.

In addition, a new Article has been included on ‘Assistance on Collection of Taxes' in the Protocol.

The Protocol shall come into force on the notification date of completion of required procedures by the respective laws of both countries.