India and Morocco have signed a protocol to their Double Taxation Avoidance Convention. This protocol will bring the information exchange provisions under the treaty into line with international standards. There is an increasing international trend towards the strengthening of exchange of tax information provisions, which are seen as an important measure in helping to combat tax evasion.
After the protocol enters into force, the two countries will be able to share effectively a wider range of information, including information held by banks. Each treaty partner will be able to take advantage of the provisions to obtain information, even in cases where that information is not required for its own domestic purposes. This will help both tax administrations to identify taxable income and reduce opportunities for tax evasion.
