In-US Digital Tax Deal

Question 1

how many countries are party to the global minimum tax deal

Answer 1

136, including india

Question 2

what are the provisions of the global tax deal

Answer 2

mncs must pay at least 15% taxes wherever they operate

Question 3

why must digital services tax and equalization tax, etc be removed

Answer 3

becasue it is being replaced by the gobal minimum tax deal

Question 4

when will the final terms of the digital tax deal be finalised

Answer 4

1 feb 2022

Question 5

what are the two pillars of the min tax deal

Answer 5

pillar one - corporations are taxed where they operate and earn profits
pillar two - at least 15% tax even in low tax jurisdiction

Question 6

what is the digital service tax(dst) imposed by the indian government, what is it also called

Answer 6

The central government in its Finance Bill of 2020-21, imposed 2% digital service tax on trade and services of foreign e-commerce companies such as Amazon and Walmart-owned Flipkart and others having an annual turnover of ₹2 crore or more.

equalisation levy

Question 7

What is Equalisation Levy 2020?

ini. introduced in 2016

Answer 7

EL 2.0 was made effective on April 1, 2020. The new levy now includes a 2 per cent tax on gross revenues received by a non-resident “e-commerce operator” from the provision of ‘e-commerce supply or service’ to Indian residents or non-resident companies having a permanent establishment in India.

Question 8

as per the deal till when can india impose its equalisation levy on digital corporates

Answer 8

until 31 march 2024 or until the implementation of the pillar one of the oecd agreement on gobal minimum tax

Question 9

which indian tax did the ustr hold as discriminatory action in january 2021 and threaten retaliatory trade action of 25% tariffs on forty products like shrimp, basmati rice, etc

Answer 9

digital services tax

USTR - US Trade Representative

Question 10

pillar one applies to companies with a global turnover of over _______ euros

Answer 10

20 billion euros

Question 11

which new section inserted by the financial act of 2020 provided for the 2% equalisation levy

Answer 11

section 165

Question 12

which new section inserted by the financial act of 2020 provided for the 2% equalisation levy

Answer 12

section 165

Question 13

in 2020 the equalisation levy’s scope was broadened to include the equalisation levy for non-resident e-commerce operators involved in supply of services, including online sale of goods and provision of services, with the levy at the rate of 2% effective April 1, 2020. what was the levy first introduced in 2016 about

Answer 13

Equalisation levy at 6% has been in force since 2016 on payment exceeding Rs 1 lakh a year to a non-resident service provider for online advertisements.

Question 14

india and us have agreed to a transitional approach on EL or digital tax starting from

Answer 14

1 april 2022

Question 15

when was mauritius put on fatf’s grey list due to its weak mechanism to counter terror financing and money laundering

Answer 15

feb 2020

Question 16

why was mauritius one of india’s largest contributors to india’s fdi

Answer 16

india-maur double tax avoidance treaty (dtaa) helped avoid capital gains tax (they could avoid being taxed in both source and residence country)
could easily set up offshore entities

Question 17

what has made mauritius less attractive

Answer 17

tweaking of dtaa to remove tax benefits

general anti-avoidance rules of 2017

Question 18

after inclusion in the fatf list fdi fell fro

Answer 18

₹57 785 crores in 2019-20 to

₹41 661 crores in 2020-21

Question 19

Article 265

Answer 19

empowers the government to levy or collect tax from the people of India. In any case when a person escaping from paying tax generally would be liable for tax evasion under Indian laws.

Question 20

____ panel was set up in 2012 to draw the final guidelines on GAAR

Answer 20

Parthasarthy Shome

Question 21

GAAR, framed by the _____________ under the Finance Ministry came into effect from April 2017.

Answer 21

Department of Revenue

Question 22

Its provision comes under the .

Answer 22

Income-tax act 1961

Question 23

GAAR was initially proposed in the _________, although it was introduced into India in the Budget session of Parliament in 2012.

Answer 23

Direct Tax Code 2009

Question 24

The GAAR was introduced in India after the Vodafone deal with _______. This deal took place in the Cayman Islands.

Answer 24

Hutchison-Essar
As per the government, above USD 2 billion was lost in taxes.
In the subsequent case, the Supreme Court ruled in favour of Vodafone.

Question 25

GAAR is general where as _______ (SAAR) are special rules targeted at individual on case by case specific provisions.

Answer 25

Specific Anti Avoidance Rules

Question 26

in gaar, there is no difference between

Answer 26

tax evasion and tax avoidance (all transactions that have the implication of avoiding tax can come under gaar scanner)

Question 27

Financial Action Task Force (on Money Laundering) (FATF), also known by its French name,

Answer 27

Groupe d’action financière (GAFI)

Question 28

when was fatf founded

Answer 28

Headquarters: Paris, France
Founder: Group of Seven
Founded: 1989
President: Marcus Pleyer
Purpose: Combat money laundering and terrorism financing
Membership 39 of which 2 are eu and the gcc

Question 29

Together, the _____________________ set the international standard for anti-money laundering measures and combating the financing of terrorism and terrorist acts.

Answer 29

Forty Recommendations on Money Laundering and eight (now nine) Special Recommendations on Terrorism Financing