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sdiction over certain items of income to one of the treaty countries or dividing the tax revenue between the two countries when neither is willing to forego its claim entirely. Tax treaties, thus authorizes a degree of mutual space that is not possible under the much less supple statutory methods applied to businesses with countries in general [14] .

 

Bilateral treaties have been debated upon in the light of varying, financial, social and other policies which are vital to the parties involved. The wrapping up of a treaty between two developed countries is facilitated by them been in almost similar levels of development, so that the reciprocal flows of trade, investment and hence the respective gain or loss of revenue to the parties from reducing taxes would be relatively equal in size.

 

Most countries have entered into bilateral agreements with respect to taxes. A clear example is the UK/USA Double Taxation Agreement. This treaty like many others tries to eliminate double taxation of income for UK and US inhabitants, it also protects the inhabitants form fiscal discrimination, it provides them with forgone conclusion about the tax treatment of income and gains and to prevent tax evasion and avoidance. The treaty also guarantees that benefits go to those UK and US residents that are due and entitled to it. This treaty is firmly founded on the OECD Model Tax Convention [15]

 

It is a known fact that the reduction of double taxation, elimination of tax evasion and encouraging cross-border trade efficiency are some of the basis for entering into treaties. [16] It is generally accepted that tax treaties improve certainty for tax payers and tax administration in their international dealings.

 

MULTILATERAL TREATY [17]

 

Multilateral agreement which has to do with agreements between three (3) or more parties concerning the terms of a specific circumstance are often the result of recognition of common ground between the various parties involved concerning the issue at hand. Multilateral agreement differs from bilateral agreements, in that bilateral agreements occur between two (2) parties only. Bilateral and multilateral agreements can sometimes conflict with one another, particularly when the provisions of a multilateral agreement amend or invalidate the terms of a very old bilateral agreement [18] .

 

The work on multilateral agreement has since begun by the OECD in the area of avoiding international double taxation among member countries. This is evident by member countries in their collective and multilateral support of how international double taxation should be avoided by conceding to the OECD Model Tax Convention. [19]

 

Efforts have been made to digress from a bilateral regime to one more of a multilateral scheme. The multilateral agreemen本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。