Double taxation can also take place within a single country. This usually occurs when sub-national jurisdictions have tax powers and jurisdictions have competing rights. In the United States, a person can legally have only one residence. However, if a person dies in different states, anyone can say that the person was a resident in that state. Intangible personal property can then be imposed by any state asserting a right. In the absence of specific laws prohibiting multiple taxation and as long as total taxes do not exceed 100% of the value of personal material assets, the courts will allow multiple taxation. [Citation required] In India, the central government has been authorized, in accordance with Article 90 of the Income Tax Act, to enter into agreements with other countries on double tax evasion (so-called tax agreements). A DBA (double taxation agreement) may require that the tax be levied by the country of residence and that it be exempted in the country where it is created. In other cases, the resident may pay a withholding tax on the country where the income was collected and the taxpayer receives a compensatory tax credit in the country of residence to take into account the fact that the tax has already been paid.

In the first case, the taxpayer (abroad) would declare himself non-resident. In both cases, the DBA may provide for the two tax authorities to exchange information on these returns. Because of this communication between countries, they also have a better view of individuals and businesses trying to evade or evade tax. [4] 5. The Tribunal also noted that a distinction had been made between a commercial relationship and a stable establishment. The latter is intended for the taxation of a non-resident`s income under a double taxation agreement, while the first applies to the application of the Income Tax Act. With regard to offshore services, the Tribunal found that a sufficient territorial link between the transfer of services and India`s territorial borders was necessary to make income taxable. The entire contract would not be due to activities in India. The residence examination, also applied in international law, is that of the taxpayer and not that of the beneficiary of these services. On 7 June 2017, Georgia signed a “multilateral agreement under the OECD Ministry on the implementation of tax treaty measures to prevent base erosion and profit transfer” (LIV). The main objective of the multilateral convention is the implementation of measures related to the BEPS Treaty, in particular minimum standards in contracts relating to the prevention of double taxation under BEPS 6 and 14.