Cabinet approves amending Convention and Protocol between India and Israel
Updated: Oct 07, 2015 05:11:02pm
The Protocol provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest, said a Cabinet release.
It is further provided 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.
The Protocol further provides for 'Limitation of Benefits' Article as an anti-abuse provision aimed at preventing misuse of the Convention. The provisions of this Article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the Convention.
The existing Double Taxation Avoidance Convention (DTAC) between Indian and Israel was signed in 1996. Both the Indian and Israeli sides agreed to update Article 27 on the ‘Exchange of Information’ in India-Israel DTAC to meet internationally accepted standards. (KNN Bureau)