Provide the objectives of a Double Taxation Agreement.

Question

Question

Answer 1

Answer #1

The objectives of a Double Taxation Agreement are-

1.To divide the right of taxation between the contracting countries.

2. To establish rules for the division of revenue and reducing the rates of tax on specific incomes.

3. To avoid differences in taxation between the contracting countries.

4. To ensure taxpayers' equal rights and security.

5. To prevent the evasion of taxation by the taxpayers of contracting countries. .

Thanks & all the best.........

Answer 2

Similar Homework Help Questions

[Taxation]Historically, taxpayers have implemented strategies to mitigate or eliminate the effects of double taxation. Why might...

[Taxation]Historically, taxpayers have implemented strategies to mitigate or eliminate the effects of double taxation. Why might taxpayers think twice before implementing such strategies today? Explain. （The nondeductibility of the distribution by the corporation, coupled with the taxation of the distribution to the shareholder, creates double taxation of the corporation’s income, first at the corporate level and then at the shareholder level. The double taxation of distributed corporate income has been a principle of the U.S. income tax.）
What is double taxation? Give one proposal as a solution.

What is double taxation? Give one proposal as a solution.
Which of the following are advantages of corporations: Ease of transfer and double taxation Limited liability...

Which of the following are advantages of corporations: Ease of transfer and double taxation Limited liability and double taxation Limited life and limited liability Ease of transfer and limited liability

Double taxation of foreign dividends received by individuals is avoided due to the combined mechanism of...

Double taxation of foreign dividends received by individuals is avoided due to the combined mechanism of the dividend gross-up and dividend tax credit. True of False
5. What are the costs of taxation? Provide a detailed discussion.

5. What are the costs of taxation? Provide a detailed discussion.
Double taxation of corporate Income results because hond stributions are included in a shareholdersgross income and...

Double taxation of corporate Income results because hond stributions are included in a shareholdersgross income and are not deductible by the corporation True False

a QUESTION THREE Ghana has not entered into Double Taxation Agreement (DTA) with the government of...

a QUESTION THREE Ghana has not entered into Double Taxation Agreement (DTA) with the government of Nigeria. Kumuga, a resident person of Ghana approached you this morning to explain to him whether foreign tax credit relief covers those residents trading in Nigeria Required State your responses to Kumuga on the above issue? (4 marks) b. Amafiman Rural Bank commenced operation on 1st January, 2018, preparing account to 31 December each year. The Income statement for the year ended 31st December,...
How does a S corporation evade double taxation on capital gains compared to a general corporation?

How does a S corporation evade double taxation on capital gains compared to a general corporation?
Provide Chipotle's Objectives (Objectives MUST be measurable) – Short range: Long range:

Provide Chipotle's Objectives (Objectives MUST be measurable) – Short range: Long range:

Double taxation of corporate income results because dividend distributions are included in a shareholder's Gross income...

Double taxation of corporate income results because dividend distributions are included in a shareholder's Gross income and are not deductible by the corporation True False