Round Tripping Agreement

Round trip trading largely refers to the unethical practice of buying and selling stocks of the same stock over and over again in order to manipulate observers into believing that the stock is in high demand. This behavior is very different from a legal and ethical round trade that every investor concludes when buying a security and selling it later. Round trip trading can easily be confused with legitimate business practices, such as for example. B frequent round trading by model day traders. These merchants usually make many transactions on the same day. Although they have minimum standards, they must train. B to hold at least $25,000 of account capital before making such transactions, and to report their net gains or losses from transactions as income, instead of claiming that profits are investments and losses are expenses. Delhi sees this so-called „round tripping” as an abuse of the treaty and has long been trying to stop it. The Income Tax Department had accused NDTV of „taking finances for a round tripping” of finances in July 2007, as part of the issuance of $100 million of step-up coupon bonds through its British subsidiary. In a contextualized approach, the authors took up DTAA 1 between Mauritius and India to determine the extent to which round tripping and treaty trade have an impact on the bilateral agreement between India and Mauritius.

The DBAA between India and Mauritius2 was signed in August 1982 and the spirit of the bilateral agreement and the ensuing negotiations should provide for exemptions for shareholders, since those who have already been taxed in Mauritius should no longer be taxed. However, capital gains tax exemptions in Mauritius would also mean that tax evasion will soon become the focus of recent negotiations between the two countries, which are very concerned about tax abuse, round-tripping and contract shopping. Although Mauritius is considered a fiscal foam, relations between the two countries are still very strong, both historically and financially, with mutual economic and financial support in a win-win situation. Indeed, Mauritius contributes nearly 34% of total foreign direct investment (FDI) in India and becomes one of the main contributors of foreign direct investment in India and is in direct competition with other countries such as Singapore. However, the Indian authorities have found that in Mauritius, in addition to dirty money and money laundering, there are serious abuses against tax evasion and, as a result, India had to enter deep waters to modify its DBAA to prevent back and forth and, consequently, contract purchases. There are a number of observed factors that promote round tripping. Primarily, the tax benefits allowed abroad encourage individuals to park money there and then redirect it. Other companies that make unconventional round tripping deals are AOL with Sun Microsystems and Global Crossing with Qwest Communications. It is alleged that some telecommunications undertakings, when exchanging capacity, reserved the value of incoming capacity as turnover and the value of outgoing capacity as investment. These transactions had the effect of inflating profits. The SEC decided that the reservation of swap income in telecommunications capacity was inappropriate. The term `round tripping` is a series of transactions between undertakings which increase the turnover of the undertakings concerned, but which ultimately do not bring any real economic benefit to either undertaking.

Although not necessarily illegal, round tripping is incorrect at best….