Maddipatti Sri Seshamamba, Sastra Deemed University
Suyambulingam S, Sastra Deemed University
ABSTRACT
In an era of increasing global economic integration, tax treaties play a pivotal role in governing the taxation of cross-border income and capital. Developing nations, seeking to harness the benefits of international trade and investment, face complex dynamics in negotiating these agreements. This research paper investigates the challenges encountered by developing countries in negotiating tax treaties and explores strategies for effective negotiation.
The paper begins by examining the historical context of tax treaties and their evolution, setting the stage for understanding the challenges faced by developing countries. Factors such as information asymmetry, resource constraints, and evolving global economic dynamics contribute to the difficulties in achieving fair and balanced agreements.
Through an in-depth analysis of these challenges, the research identifies potential strategies for developing countries to navigate the negotiation process successfully. Emphasis is placed on empowering these nations to address imbalances, protect their fiscal interests, and create an environment conducive to sustainable development.
The exploration goes beyond the technical aspects of tax law, recognizing the broader implications of tax treaty negotiations on economic justice and the equitable distribution of benefits arising from international economic activities. By shedding light on these intricate dynamics, the paper aims to contribute to the ongoing dialogue on fostering a more inclusive and balanced global economic system.
In conclusion, the research provides insights that can inform policymakers, tax authorities, and scholars about the complexities of tax treaty negotiations involving developing countries. The proposed strategies aim to empower these nations in their pursuit of agreements that align with their economic objectives and contribute to a fair and mutually beneficial international tax landscape.
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