International Tax Avoidance-The Tension between Protecting the Tax Base and Certainty of Law

In the context of cross border investment , the growing problem of tax avoidance and the use of double tax treaties deserves much greater examination. The problem is growing because business is increasingly international, while the need for tax revenue remains, after the recent financial crisis, essential to governments trying to deal with fragile economies and fiscal deficits. This paper evaluates the approach taken by selected countries to cross-border tax avoidance in an attempt to identify the key principles behind a country’s attempts to deal with international tax avoidance.