Akshaya Shri M & Pranav, Alliance University
Abstract
This paper aims to briefly examine the various techniques undertaken by the big corporate companies that undertake international investment. The Methods used by Transnational Companies to Avoid tax mostly involve tactics like Exemption of Foreign Affiliate Income from Additional Home Country Tax, Transfer Pricing (Invoice Values)Royalty Payments etc. We have analysed the effectiveness of the double taxation agreement and how the tax havens impact these investments. We have also analysed the dispute resolution system in this area and tried to point out the loopholes and suggestions to overcome the same. We have come up with the idea of having Supra international authority to deal with the problems arising due to double taxation and tax avoidance.
Keywords: Tax avoidance, DTAA, BEPS, OECD, Dispute resolution, Tax authorities
