Agreement between the Government of the Republic of India and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes - S. O. 166 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) Central Board of Direct Taxes NOTIFICATION New Delhi, the 5th March, 1997 INCOME-TAX S. O. 166(E). -Whereas the annexed Protocol to the Convention between the Government of the Republic of India and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has come into force on 9th January, 1997 on the notification by both the Contracting States to each other of the compliance of the domestic requirements as required by Article 2 of the said Protocol; Now, therefore, in exercise of the powers conferred under section 90 of the Income-tax Act, 1961 (43 of 1960), the Central Government hereby directs that all the provisions of the said Protocol shall be given effect to in the Union of India. ANNEXURE PROTOCOL TO THE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of New Zealand, Having regard to the Convention between the Government of the Republic of India and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect of taxes on income done at Auckland on 17 th October, 1986 (hereinafter referred to as the Convention ). Have agreed that the following provisions shall form an integral part of the Convention : ARTICLE 1 Notwithstanding paragraph 3 of Article 23 of the Convention, a New Zealand resident deriving income from India, being income referred to in that paragraph, shall not be deemed to have paid Indian tax in respect of such income where the competent authority of New Zealand considers, after consultation with the competent authority of India, that it is inappropriate to do so having regard to : (a) whether any arrangements have been entered into by any person for the purpose of taking advantage of paragraph 3 of Article 23 for the benefit of that person or any other person ; (b) whether any benefit accrues or may accrue to a person who is neither a New Zealand resident nor an Indian resident; (c) the prevention of fraud or the avoidance of the taxes to which the Convention applies ; (d) any other matter which either competent authority considers relevant in the particular circumstances of the case, including any submissions from the New Zealand resident concerned. ARTICLE 2 (1) The Contracting States shall notify each other that the domestic requirements for entry into force of this Protocol have been complied with. (2) This Protocol shall enter into force on the date of the later of the notifications referred to in paragraph (1) of this Article. ARTICLE 3 Article 1 of this Protocol shall apply to income derived on or after the 1st day of the month following the date on which this Protocol enters into force. DONE at New Delhi in duplicate this Twenty Ninth day of August, One Thousand Nine Hundred Ninty Six in the Hindi and the English languages, both the taxes being equally authentic. In case of divergence between the two texts, the English text shall be the operative one. FOR THE GOVERNMENT OF THE REPUBLIC OF INDIA (G. K. MISHRA) Chairman, Central Board of Direct Taxes Ex- Officio Special Secretary to the Govt. of India FOR THE GOVERNMENT OF NEW ZEALAND (Nicholas William Bridge) High Commissioner of New Zealand in India [Notification No. 10280/F. No. 500/151/93-FTD] N. P. SAHNI, JT. Secy.