Can tax treaties be used to create a tax liability?

In India, it is a settled principle of law that the tax treaties cannot create more onerous obligations or liabilities independent of enabling provisions under the domestic law. As such, where any income is exempt under the provisions of domestic tax law, the tax treaty cannot create a fresh tax liability. Internationally, most of the … More Can tax treaties be used to create a tax liability?

Developments in International Tax: An update and its impact

OECD proposes changes to be incorporated in the 2017 update to the OECD Model Tax Treaty  The Organisation for Economic Co-operation and Development (OECD) on 11 July 2017 released the draft contents of the update to the OECD Model Tax Convention (the 2017 update). Among a number of other proposals, the 2017 update contains changes … More Developments in International Tax: An update and its impact

The Multilateral Instrument and the future of bilateral tax treaties

Tax treaties are based on a set of common principles designed to eliminate double taxation that may occur in the case of cross-border trade and investments. The current network of bilateral tax treaties dates back to the 1920s and the first Model Tax Convention developed by the League of Nations. The Organisation for Economic Co-operation … More The Multilateral Instrument and the future of bilateral tax treaties

Welcome Home Fellow Indians

“As one more Indian fiscal year ended, it was yet again time to think of the various tax and fiscal developments in our country. On the airplane returning from an overseas trip in the first week of the new fiscal year, the familiar and comforting voice of the lady pilot announced the landing in Mumbai.

Budget 2016 – what does it entail from BEPS perspective

In 2015, there were exceptional changes in the global tax landscape — Base Erosion and Profit Shifting (BEPS) discussion drafts turned into final recommendations with many jurisdictions already legislating on a unilateral basis in anticipation of final recommendations. Across the globe, new and sometimes highly novel national legislation was released to address BEPS challenges. The … More Budget 2016 – what does it entail from BEPS perspective

Union Budget 2016-17: decoding the Government’s stand on cross-border taxes

The NDA Government’s second Union Budget is coming at rather interesting crossroads, from the point of view of international taxation. On one hand, there is persistent reinstatement of efforts toward having a non-adversarial tax regime; while on the other, legislative enforcement of the OECD Base Erosion and Profit Shifting (BEPS) recommendations, which have changed the … More Union Budget 2016-17: decoding the Government’s stand on cross-border taxes