Tax treaties are generally based on which of the following convention? A. OECD Model Tax Convention B.…
International Double Taxation Avoidance Agreements (tax treaties) are predominantly negotiated and drafted on the basis of two global conventions: (A) the OECD Model Tax…
Choose your answer
Tax treaties are generally based on which of the following convention?
A. OECD Model Tax Convention
B. Model Tax Convention
C. WTO Model Tax Convention
D. IMF Model Tax Convention
Answer and explanation
Correct answer A
International Double Taxation Avoidance Agreements (tax treaties) are predominantly negotiated and drafted on the basis of two global conventions: (A) the OECD Model Tax Convention (which favours residence-based taxation preferred by capital-exporting developed nations) and (B) the UN Model Tax Convention (which grants greater source-based taxing rights to capital-importing developing nations), i.e., A & B only.
Practice for these exams
-
UGC NET Commerce