Abstract
Tax issues sometimes are very hard to resolve, which can lead to nullify or modify trade agreements. Thus, there is a need for flexibility and an understanding of taxes within any organization that might encounter tax issues and disputes. This chapter is divided into two sections. The first discusses actual cases that arose in the past under the GATT and the WTO, where a tax, specifically income tax, was the subject of a dispute, such as the Domestic International Sales Corporation (DISC) cases. The second section includes several hypothetical cases that are presented to show the potential fallout if the problem is not dealt with.