Cabinet Approves Avoidance of Double Taxation and Prevention of Fiscal Evasion Convention between India and New Zealand

The Union Cabinet chaired by the Prime Minister Shri 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). 
●    The Protocol was signed on 26th October, 2016.
●    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.
●    Article 26 on 'Exchange of Information' of the existing Convention has been replaced with a new Article in the Protocol which is in line with the international standard for exchange of information.
●    A new Article on ‘Assistance on Collection of Taxes' has been added in the Protocol.
●    The Protocol shall enter into force on the date of notification of completion of the procedures required by the respective laws of the two countries for entry into force of the Protocol.