StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

Tax Treaties and Issues in International Taxation - Case Study Example

Summary
"Tax Treaties and Issues in International Taxation" paper argues that tax treaties have always been an important part of the economic structure of any nation. The importance of these treaties has seen to have risen in modern times due to the fact that the economic order has undergone a great change. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful

Extract of sample "Tax Treaties and Issues in International Taxation"

Download file to see previous pages

The phenomenon culminated in the need for an international standard of taxation that would ensure that all the involved parties benefit, while the nation-states receive their dues. This was required to eliminate chances of fiscal fraud, and tax evasion and promote greater economic growth development and investment.

Tax treaties exits usually on a bilateral medium between nation-states and countries in an attempt to ensure that there is avoided any chance of taxes being levied twice on the same capital, saving, inheritance, or other assets and products. These are present between most of the nation states in the current globalized economic system and are also known as ‘double taxation agreements’, ‘double tax treaties’, or ‘tax information exchange agreements (TIEA)’. Most of the nations in the world today have a number of tax treaties. The United Kingdom, for example, maintains tax treaties with more than 110 countries, while the United States of America maintains treaties with 56 nation-states when counted in the year 2007.

International tax treaties are signed between two nations so as to ensure that double taxation, which can be defined as a situation where a taxpayer has to pay taxes on the same item to two different states imposing a comparable tax, is avoided. In such a situation what usually occurs is that the taxpayer is a resident of a nation, while his/ her gains are made in another state. Due to this, a system emerges where he pays his taxes in the resident state (which is known as classical taxation), and at the same time the individual also has to pay taxes for the gains made in the country of the transaction this leads to the double burden on the taxpayer. The bilateral tax treaties help ensure that such a situation is avoided. This is especially important because a failure to do so would lead to a negative impact on international trade and investment. 

...Download file to see next pages Read More

CHECK THESE SAMPLES OF Tax Treaties and Issues in International Taxation

International Taxation

The paper 'international taxation' focuses on one of the most glaring challenges of the company – the issue of taxation.... The author states that there has been an intense debate on whether it would be wise for international taxation to be changed to allow for the holding company to pay the group's consolidated tax.... Therefore, a general anti-avoidance rule may operate within existing laws or provide a caveat against general tax avoidance issues....
8 Pages (2000 words) Research Proposal

International Taxation Rules on International Companies

The essay " international taxation Rules on International Companies " compares taxation of permanent establishments as they constitute a vital part of international taxation law.... s much as the OECD would want to come up with proper legislation and mechanism for international taxation policy, it found out that some of its definitions caught certain features of member countries' tax systems.... As such, the organization has found itself leaning more on international taxation rules in its operations....
8 Pages (2000 words) Essay

ODCE model tax tready

The OECD model helps to solve the problem that arises in the international taxation field.... he UN model is used as a tool in international tax treaty negotiations in developing and developed countries for managing tax issues.... This model allows larger source taxation.... It is also referred to as ‘double taxation convention'.... The main commitments of PE provision are to provide a taxation right to the Source State....
4 Pages (1000 words) Essay

International Tax

This essay "International Tax" explains that the technical service fees are not defined under the taxation laws and therefore it must be taxed as the independent personal service or the business income in the states where the business is conducted.... The international tax system is required to be structured in such a way that any company carrying out its business in more than two countries should be liable to the domestic law of more than one country and the conflict of laws existing between the countries can be resolved by implementing the international law....
7 Pages (1750 words) Essay

Taxation of International Companies

A network of bilateral tax treaties holds claims about the existence of international tax.... The main idea of this study under discussion "taxation of International Companies" is to know about a significant degree of convergence that has been witnessed in the domestic tax laws of the developed nations.... These taxation measures have especially been inspired by the example of the United States.... There has been a loss in force with regard to a distinction between those nations with a global tax jurisdiction, and those whose taxation system is territory-oriented....
8 Pages (2000 words) Assignment

Tax Treaties and International Taxation

This paper, tax treaties and International Taxation, declares that model tax treaties, in general, do not require that contracting countries coordinate their tax rates.... According to the paper, bilateral tax treaties typically have two general purposes; the prevention of double taxation and the prevention of tax evasion.... he definition of residence of a taxpayer can expose the taxpayer to double taxation, depending on whether or not domestic laws can be reconciled to eliminate one residence in favour of another....
18 Pages (4500 words) Research Paper

The Main Factors of the Singaporean Tax System

The paper "The Main Factors of the Singaporean Tax System" concerns the Withholding tax and Double taxation Agreements.... Individuals who are non-resident are liable to pay tax upon the entire income that is sourced from Singapore but for situations where the income in question is exempted from taxation.... (Tan, 2009 p348)The taxation basis for resident and non-resident companies alike is the same from a generic point of view.... The only difference is that some benefits are enjoyable by resident companies only like the benefits that arise through Double taxation Agreements by Singapore and other nations....
14 Pages (3500 words) Assignment

Corporate Residence in the Modern World

This is mostly referred to as taxation on an incorporation basis.... This can be very different in other jurisdictions which may opt to apply taxation on a management basis.... He came up with the principle that: 'A company resides, for Income tax, where its real business is carried on .... t is very important that when one is using offshore structures to do business in a foreign jurisdiction always ensure that said entity exists as a tax resident in a favorable jurisdiction....
11 Pages (2750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us