India and Cyprus have “successfully completed” negotiations on a treaty that will ensure that Indian authorities can collect tax from companies that routed their business through the European nation to avoid paying capital gains, PTI reported. Cyprus’ investor-friendly tax rules made it a popular destination for companies from Europe and the United States who wanted to invest in India.

By exploiting loopholes in the old treaty between the two countries, companies could set up their business on the island nation and pour Foreign Direct Investment in India without having to pay capital gains, which are levied when a large asset or shares are sold.

Indian tax officials have been arguing that Cyprus has not shared enough information on black money stored there by tax evaders, Livemint reported. Cyprus is one of the top FDI destinations for investments into India. India had earlier amended a similar treaty with Mauritius, which was considered a major step towards fixing India’s black money problems.