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One frequently utilized strategy in international taxation is the collaboration between two or more tax authorities, commonly referred to as tax coordination. This approach aims to establish a harmonious relationship between different tax systems in order to ensure fair and efficient taxation practices. In essence, it involves a shared effort to establish and enforce tax laws, regulations, and policies that benefit all parties involved. This practice not only promotes a sense of unity among tax authorities, but also plays a crucial role in facilitating international commerce and trade.
