Abstract

In India, the framework for preventing international tax evasion is based on International Taxation Instruments, such as Double Taxation Avoidance Agreements (DTAA), domestic tax laws, and judicial decisions related to tax evasion. Every system of governance requires a structured set of rules and regulations to ensure the smooth administration of laws. In the same way, a clear set of rules is very important for stopping people from not paying their taxes. It makes sure that tax rules are followed and keeps the country's money from going to waste. As the geopolitical situations and the foreign affairs of the friendly country is to be protected by maintaining a harmony in the tax structure. If the tax peace is not maintained between the nations by way of arrangements or agreements then ultimately the companies and corporations will be suffering with the hands of the government byway of imposition of dual taxes and tariffs, in other words it may extend to tax wars. As a result the dual taxes paid by the individual or the company shall be shifted to the innocent consumers who are no-way related or connected with the nation’s political and ideological contradictions. The free trade policy or the facilitation should be made mandatorily applicable between the nations, so that their vested interest shall not affect the people of the country.

Keywords