MNCs And Tax Avoidance: GAAR Provision To Override DTAA In Case Of Abuse

Nishka, ICFAI Law School, The ICFAI University, Dehradun

Dr. Vivek Kumar, Assistant Professor at ICFAI Law School, The ICFAI University, Dehradun

ABSTRACT

This article explores the issue of tax avoidance by multinational corporations (MNCs) and the use of General Anti-Avoidance Rules (GAAR) to override Double Taxation Avoidance Agreements (DTAA) in cases of abuse. The article discusses the various techniques used by MNCs to avoid paying taxes and the challenges faced by tax authorities in detecting and preventing such practices. It then examines the role of GAAR provisions in addressing this issue and the extent to which they can be used to override DTAA provisions. The article concludes that while GAAR can be an effective tool in preventing tax avoidance, its implementation should be balanced with the need to provide certainty and predictability for taxpayers.