CBDT Chairman M C Joshi leaves for Macau today to ink a double taxation avoidance agreement , a move to facilitate the exchange of tax-related and banking information between the two and prevent tax evasion. Macau is one of the most well-known offshore financial centres and tax havens worldwide.
The agreement will also help create a better investment climate for Indian businesses in Macau and vice-versa.Double taxation is a situation in which one or more taxes is imposed on the same income, asset or financial transaction of an entity of one country doing business in another country by two or more countries, such as income paid by an entity of one country to a resident of a different country.This double taxation liability can be mitigated by tax treaties between countries.
