Good idea, but tough to implement

The principles of horizontal and vertical equity in taxation are well-known . Governments often violate these principles by giving liberal sops and, thereby , raising questions about the general fairness and distribution of the tax burden that have important consequences on tax-compliance behaviour. There is also another less talked about equity: the inter-nation equity. With globalisation, presence of multinationals , rise in related party transactions and e-commerce , this concept is assuming more importance. Theoretically , when income-earning activities take place because of investments coming from one country exploiting the resources in another country, each should get its fair share of taxes.

Source: Economic Times