In the event of an objection between the provisions of the Income Tax Act or the Double Taxation Convention, the provisions of the latter shall have priority. The term “double taxation” may also refer to the double taxation of income or activity. For example, corporate profits may be taxed first if they are earned by the entity (corporation tax) and, in turn, when the profits are distributed to shareholders in the form of dividends or other distributions (dividend tax). The revised double taxation agreement between India and Cyprus, signed on 18 November 2016, provides for the withholding tax of capital gains from the disposal of shares instead of the residence-based taxation provided for under the double taxation convention signed in 1994. For investments made before the 1st, however, a safeguard clause has been provided for, in which capital gains remain taxed in the country where the taxable person is established. Through this communication between countries, they also have a better view of individuals and companies trying to avoid or evade taxes. [4] According to a 2013 business europe study, double taxation remains a problem for European companies and a barrier to cross-border trade and investment. [9] [10] Problem areas include limiting the deductibility of interest, foreign tax credits, settlement issues, and divergent qualifications or interpretations. Germany and Italy were identified as the Member States where most cases of double taxation occurred. .