Cabinet nod to revise India-New Zealand double tax avoidance pact

New Delhi, Nov 23 (IANS) The Union Cabinet on Wednesday approved the third protocol to India’s agreement with New Zealand on avoidance of double taxation and on the prevention of fiscal evasion, an official statement here said.

“The Protocol, signed on 26 October, 2016, 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,” a cabinet communique said.

“A new article on ‘Assistance on Collection of Taxes’ has been added in the Protocol,” it added.

The Convention between India and New Zealand came into force on December 3, 1986. It was amended in 1997 through a first protocol and in 2000 through a second protocol.

On Tuesday, India and Switzerland signed an Automatic Exchange of Information (AEOI) agreement here under which India will start getting information automatically about accounts held by Indians in Swiss banks from September 2019.

“Fighting the menace of black money stashed in offshore accounts has been a key priority for the present government,” a Finance Ministry release said here.

The government’s recent demonetisation of high-value currency notes has provoked calls from opposition parties for the government to act also against black money stashed abroad.