THE
UN, in order to boost mechanisms to prevent tax evasions ,has announced that it
has updated a set of guidelines to prevent double taxation between countries, as
well as to avoid tax evasion, which costs countries $3.1 trillion every year.
The move has taken into consideration that income from cross-border investments
may be taxable in both investor and recipient countries, something which can be
prevented by setting adequate measures in place.
The
main objective of the revision of the UN Model is reportedly to take into
account recent developments in the areas of international tax policies relevant
for both developed and developing countries and to facilitate entry into
bilateral tax treaties by developing countries, which would contribute to
attaining their development goals. The revised model also provides
recommendations on how to combat corporate tax evasion as well as a set of rules
for countries seeking to invest in developing countries.
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