The abolition of tax havens would require a degree of cooperation and coordination among industrialised countries and a limit on the sovereign rights of states. Explain (200 Words)
Refer - Business Standard
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· Double Taxation Avoidance Agreements (DTAAs) emerged as a preferred device to minimise cross-border double taxation of the taxpayer operating in both those countries.
· Multi-national company (MNC) taxpayers could now shop around among different DTAAs to locate the management of their company in a country to derive maximum tax benefit, delinked from the extent of value added being generated there.
· MNC tax avoidance was recognised as a heavy burden on nation states advanced and emerging alike with the appearance of the 2008-09 global economic crisis.
· Overwhelming presence of small island nations that are hardly self-sustainable and continue to be economically dependent on their erstwhile colonial connections.
· They offer tax protection to the latter’s MNCs whose management is strategically anchored in the former.
· This comfortable arrangement has continued in the guise of tax sovereignty of nation states that falls under the philosophy of sovereign state entities possessing the monopoly of force within their mutually recognised territories.
· By and large, they pursue both the merits of tax sovereignty as a philosophy to be protected and tax havens as a practice to be confronted.
· Consequently, any serious attempt to combat the tax haven phenomenon would have to be conducted at a multilateral level, and would have great implications for the modern doctrine of sovereignty.
hema 5 years
Kindly review thank you
IAS Parliament 5 years
Try to discuss why there is a need for cooperation and coordination from industrialized countries. Keep Writing.
DHARU 5 years
Kindly review!!
IAS Parliament 5 years
Good attempt. Keep Writing.
Shivangi 5 years
Please review.
gaurav nidhi pandey 5 years
IAS Parliament 5 years
Try to discuss why there is a need for cooperation and coordination from industrialized countries. Keep Writing.
Shivangi 5 years
