Model tax convention of OECD and its applicability

Kaustubh S Bam
Student of 6th Semester B.A, LL.B (Hons.),
Maharashtra National Law University, Mumbai.


Abstract

As per the United Nations Handbook on ‘Selected Issues in Administration of Double Tax Treaties for Developing Countries’, “Tax treaties play a key role in the context of international cooperation in tax matters. On the one hand, they encourage international investment and, consequently, global economic growth, by reducing or eliminating international double taxation over cross-border income. On the other hand, they enhance cooperation among tax administrations, especially in tackling international tax evasion. Among the other achievements of the United Nations, is the development of an entity of international law. Also known as the ‘Law of Nations’ it is a set of rules that govern the relationship between nations and is generally accepted as binding, based on the principle of Pacta Sunt Servanda. In order to promote the progressive enhancement of the same, the International Law Commission was established by the General Assembly in 1947. The sources of international law are reflected in Article 38(1) of the statue of the International Court of Justice. One such source is the Model Tax Convention propounded by the Organization for Economic Cooperation and Development. An interesting debate pertaining to the convention has ensued since its applicability in the Indian judicial system, which is the highlight of this article.

Keywords: OECD, Jurisdiction, DTAA, Convention, Fiscal

Preferred Citation

Kaustubh S Bam, Model Tax Convention of OECD and its applicability, The Lex-Warrier: Online Law Journal (2018) 5, pp. 223 – 227, ISSN (O): 2319-8338

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