Journal Press India^®

Author Details ( * ) denotes Corresponding author

Tax treaties play an essential role in transnational tax planning, providing an approved framework to diminish the incidence of double taxation and promote international trade and investment. This paper delves into the conceptual framework of tax treaties, with a particular emphasis on the Indian context. It analyzes the provisions, benefits, and challenges associated with DTAAs, as well as their influence on international tax planning and the ways in which multinational enterprises utilize these treaties. Additionally, it addresses recent advancements in preventing treaty abuse, including the effects of the Multilateral Instrument and India’s General Anti-Avoidance Rules. A normative framework is proposed to serve as a moral and developmental guide for treaty design. In this context, principles of equity, efficiency, and sovereignty should supplant outdated biases, ensuring that developing countries receive a fair share of global tax revenues, particularly in the digital era.

Keywords

Double taxation treaties; Double taxation avoidance agreements; OECD model; UN model; Base erosion profit shifting

1. Avi-Yonah, R. S. (2007). International tax as international law: An analysis of the international tax regime. Harvard International Law Journal, 48(1), 1-50.
2. Basavanagouda & Basavaraj, C. S. (2019), Overview of Indian double taxation avoidance agreements. International Journal of Current Research, 11(3), 2220-2227.
3. Beer, S., & Loeprick, J. (2018). Profit shifting: Drivers of transfer mispricing and the potential of countermeasures. International Tax and Public Finance, 25(3), 554–593.
4. Chakraborty, A. (2014, March 5). Double taxation avoidance agreements in India. Retrieved from http://dx.doi.org/10.2139/ssrn.2404797
5. Gupta, A. (2015). Double taxation avoidance agreements: A study of Indian treaties. Journal of International Taxation, 26(4), 3-12.
6. Jain, P. (2018). The role of double taxation treaties in international tax planning: A study of Indian context. International Journal of Business and Management, 13(2), 45-56.
7. Jain, S. (2014). Indian law on double tax relief. VISION: Journal of Indian Taxation, 1(1), 55-73.
8. Kaur, H. (2015). FDI inflows in India: An analysis of source country factors with special reference to tax havens. VISION: Journal of Indian Taxation, 2(2), 62-79.
9. Kaur, H. (2015). Tax havens: A global issue. VISION: Journal of Indian Taxation, 2(1), 35-51. Retrieved https://www.journalpressindia.com/vision-journal-of-indian-taxation/doi/10.17492/vision.v2i1.6594
10. Kumar, A. D., Kumar, N. K. P. & Srikanth, B. (2018). Double taxation avoidance agreement in India: Reliefs, models and understanding on recent judicial decisions, Research Review International Journal of Multidisciplinary, 3(12), 461-465.
11. Larisa, A. A., Fatima, S. A. & Madina, T. A. (2020). Double taxation: Concept, causes and procedure for elimination. The European Proceedings of Social and Behavioural Sciences. Retrieved from https://doi.org/10.15405/epsbs.2020.10.05.170
12. OECD (2017). OECD model tax convention. OECD organization. Retrieved from https://www.oecd.org/en/publications/model-tax-convention-on-income-and-on-capital-2017-full-version_g2g972ee-en.html
13. OECD report (2023). Revenue impact of international tax reform better than expected. OECD organization. Retrieved https://www.oecd.org/en/about/news/press-releases/2023/01/revenue-impact-of-international-tax-reform-better-than-expected.html
14. OECD. (2015). Measuring and monitoring BEPS. Action 11 final report. Retrieved from https://www.oecd.org/tax/beps/measuring-and-monitoring-beps-action-11-2015-final-report-9789264241343-en.htm
15. Rao, S. (2021). Revisiting India’s double taxation avoidance agreements in the context of BEPS. Tax Policy and Economics, 15(3), 67-89.
16. Samantara, R. (2020). International double taxation relief provisions in India: A critical analysis. VISION: Journal of Indian Taxation, 7(2), 45-58.
17. Sharma, R. (2020). Treaty shopping and its implications for developing countries: A case study of India. Asian Journal of Law and Economics, 11(1), 23-40.
18. Sury, M. M. (2014). Black money and tax evasion in India. VISION: Journal of Indian Taxation, 1(1), 1-35.
19. Sury, M. M. (2017). International tax avoidance and evasion with special reference to India. VISION: Journal of Indian Taxation, 4(1), 19-39.
20. United Nations General Assembly. (2022). Resolution on International Tax Cooperation. Retrieved from https://www.un.org
21. United Nations. (2017). United Nations model double taxation convention between developed and developing countries. Retrieved from https://www.un.org/esa/ffd/wp-content/uploads/2018/05/MDT_2017.pdf
22. Zucman, G. (2014). Tax evasion on offshore profits and wealth. Journal of Economic Perspectives, 28(4), 121–148.