Imperative of Retaining National Tax Sovereignty

Tax sovereignty is an indispensable component of a nation's broader economic independence, political stability, and national security in an increasingly volatile global order. Yielding or compromising sovereign taxing power through unreflective treaties, mandatory external arbitrations, or uncontrolled tax shelters exposes a nation to base erosion, profit shifting, round-tripping, and illicit financial flows. Retaining robust tax sovereignty allows a State to safeguard its domestic revenue base, maintain economic self-determination, ensure equitable tax distribution among citizens, and engage with foreign investors from a position of confidence, transparency, and strength.(The authority for advance rulings Vs Tiger Global International II holdings) | 2026 INSC 60)