The overriding purpose of tax treaties is to:
A)create "tax havens"
B)minimize tax liability of multinational corporations
C)require business taxpayers tofile returns in all countries in which they operate
D)eliminate the "double taxation" that a taxpayer would face if his or her income were subject totax in both countries

Question

Quizplus · Accepted Answer

Tax treaties are primarily designed to eliminate double taxation, ensuring that an individual or a corporation does not pay tax on the same income in two different jurisdictions. This facilitates international trade and investment by reducing the tax burden on taxpayers operating across borders.

The Overriding Purpose of Tax Treaties Is To