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Double taxation relief (Income Tax)

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This query is : Resolved


( Author )
05 July 2013

hey frns cn u xplain wat s treaty shopping??


CA PARAS BAFNA

( Expert )
05 July 2013

The practice of structuring a multinational business to take advantage of more favorable tax treaties available in certain jurisdictions. A business that resides in a home country that doesn't have a tax treaty with the source country from which it receives income can establish an operation in a second source country that does have a favorable tax treaty in order to minimize its tax liability with the home country.

Read more: http://www.businessdictionary.com/definition/treaty-shopping.html#ixzz2YBwNlYMH


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