2-YEAR M.A. (INTERNATIONAL TAXATION)

SEMESTER –IV CHALLENGES AND FUTURE OF TAX TREATIES TAX COMPLIANCE

2.4.13 METHODS OF ELIMINATION OF DOUBLE TAXATION

Module I General Three cases of juridical double taxation- Dual residence, Residence-source, Source-source- Double non-taxation -The methods for elimination of double taxation- Exemption (full and with progression) and credit (full and ordinary), Operation and effects of the methods-Conflicts of qualifications vs conflicting treaty interpretations

Module II Exemption method (Art.23A)- Exemption relief (Art. 23A, paragraph 1), ‘may tax’ (‘subject to tax’ and ‘effectively taxed’), how relief is provided, Switch-over to credit for dividends and interest (Art. 23A, paragraph 2), Exemption with progression (Art. 23A, paragraph 3), Double non-taxation (Art. 23A, paragraph  4)

Module III Credit method (Art.23B)- Methods (ordinary FTC) (Art. 23B, paragraph 1)- General issues, FTC and domestic rules, Features of the FTC as regulated by domestic laws - Principle of progression (Art. 23B, paragraph 2), Tax sparing- Concept and rationale of tax sparing provisions, Income-tax Act provisions on unilateral relief

2.4.14 EXCHANGE OF INFORMATION AND ENFORCEMENT

Module I Exchange of information (Art.26) Concept of tax information- Objectives of Exchange of Information, Types of Information, Modes and techniques of exchange of information, Treatment of the exchanged information (Art. 26, paragraph 2)- Reciprocal confidentiality, Cases of internal disclosure, Limitations to internal disclosure- Limitations to the exchange of information (Art. 26, paragraph 3)- Violation of domestic laws or administrative practices of domestic laws of requested contracting state- Violation of secrecy rules or public order - Information gathering measures (Art. 26, paragraph 4)- Concept of ‘information gathering measures’- FATCA- Individual tax Payers Rights v. State Rights to exchange of information, India-Cyprus example, Multilateral Convention on Exchange of Information, Domestic Provisions Sec. 90, 90A, 138, 285A, 285BA under Income-tax Act, 1961

Module II Assistance in the collection of Taxes (Art. 27)- Reciprocal assistance in collection (Art. 27, paragraph 1)- Duty of assistance, Procedural issues- Revenue-claim (Art. 27, paragraph 2)- Acceptance of Revenue-claim (Art. 27, paragraph 3)- Revenue-claim ‘finally owed’ by a person resident- Conservancy measures (Art. 27, paragraph 4) Time-limits and priority for revenue claims (Art. 27, paragraph 5)- Proceedings on revenue-claims (Art. 27, paragarph 6), Cessation of revenue-claims (Art. 27, paragraph 7)- Limitations to assistance (Art. 27, paragraph 8), - 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgements in Civil and Commercial Matters

2.4.15 MOST FAVOURED NATION CLAUSE AND MUTUAL AGREEMENT PROCEDURE

Module I Non-Discrimination- Concept of non-discrimination- Meaning of expressions used in non-discrimination clauses- criteria to infer discrimination- Prohibition of discrimination based on nationality- (Art.24, paragraph 1)- discrimination in respect of stateless persons (Art. 24, paragraph 2)- discrimination based on situs of enterprise (Art.24, paragraph 3) discrimination in allowing certain deduction (Art 24, paragraph 4) ownership non-discrimination clause (Art.24, paragraph 5)- Scope of non-discrimination clauses (Art 24 Paragraph 6)- reverse discrimination-differentiation and discrimination

Module II Mutual Agreement Procedure General Aspects (Art.25, paragraph 1)- Scope- OECD commentary on MAP - Cases of application of MAP- Request of MAP before/during domestic remedies: different approaches- Procedural Aspects- Administrative and Legislative- difficulties in interpretation or application of the Convention - elimination of double taxation in cases not provided for in the Convention -Arbitration

2.4.16 BEPS, MLIs AND FUTURE OF INTERNATIONAL TAXATION-THE WAY AHEAD

Module I Overview of BEPS Action Plans- Recommendations- BEPS Action 15 -Multilateral Instruments- Unified Approach- Synthesised Treaty texts- Global Anti-Base Erosion Proposal ("GloBE")

Module II Unfinished Agenda of BEPS- India-specific concerns- International developments- Latest issues and controversies - BEPS challenges of digital economy -Forum on Harmful Tax Practices ('FHTP')- Application of Bilateral Investment Treaties in tax matters