Understanding Double Taxation: Implications, Challenges, And Reforms In A Globalized Economy
- IJLLR Journal
- 3 days ago
- 1 min read
Vasundhara Mishra, Jagran Lakecity University
Swati Singh, Jagran Lakecity University
ABSTRACT
Double taxation refers to the phenomenon where the same income, asset, or transaction is taxed by two or more jurisdictions. This issue has become increasingly significant in the context of globalization, as cross-border investments, international trade, and digital economies expand. While double taxation can inhibit international trade, hinder foreign direct investment, and complicate business operations, the phenomenon is also a reflection of the complexity and fragmentation of global tax systems.
This paper explores the implications of double taxation on both individuals and corporations, analyzing the economic, social, and political challenges it presents. It delves into the history of double taxation, its evolution in light of globalization, and the development of international tax laws and treaties aimed at mitigating its effects. The paper examines the role of multinational organizations such as the OECD and the United Nations, as well as the significance of bilateral and multilateral tax treaties in reducing the burden of double taxation. Furthermore, it critically analyzes the challenges posed by tax havens and the rise of digital economies in exacerbating the problem of cross-border taxation.
The study also focuses on current reforms and proposes actionable solutions for addressing double taxation in the modern globalized economy. These include enhancing international cooperation, establishing global tax standards, and adapting tax policies to the new digital economy. By synthesizing a comprehensive body of legal, economic, and policy-oriented literature, this paper aims to provide an in-depth understanding of double taxation, its ramifications, and the reform efforts necessary to ensure a fairer, more efficient global tax system.
