In-US Digital Tax Deal Flashcards
how many countries are party to the global minimum tax deal
136, including india
what are the provisions of the global tax deal
mncs must pay at least 15% taxes wherever they operate
why must digital services tax and equalization tax, etc be removed
becasue it is being replaced by the gobal minimum tax deal
when will the final terms of the digital tax deal be finalised
1 feb 2022
what are the two pillars of the min tax deal
pillar one - corporations are taxed where they operate and earn profits
pillar two - at least 15% tax even in low tax jurisdiction
what is the digital service tax(dst) imposed by the indian government, what is it also called
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
What is Equalisation Levy 2020?
ini. introduced in 2016
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.
as per the deal till when can india impose its equalisation levy on digital corporates
until 31 march 2024 or until the implementation of the pillar one of the oecd agreement on gobal minimum tax
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
digital services tax
USTR - US Trade Representative
pillar one applies to companies with a global turnover of over _______ euros
20 billion euros
which new section inserted by the financial act of 2020 provided for the 2% equalisation levy
section 165
which new section inserted by the financial act of 2020 provided for the 2% equalisation levy
section 165
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
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.
india and us have agreed to a transitional approach on EL or digital tax starting from
1 april 2022
when was mauritius put on fatf’s grey list due to its weak mechanism to counter terror financing and money laundering
feb 2020
why was mauritius one of india’s largest contributors to india’s fdi
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
what has made mauritius less attractive
tweaking of dtaa to remove tax benefits
general anti-avoidance rules of 2017
after inclusion in the fatf list fdi fell fro
₹57 785 crores in 2019-20 to
₹41 661 crores in 2020-21
Article 265
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.
____ panel was set up in 2012 to draw the final guidelines on GAAR
Parthasarthy Shome
GAAR, framed by the _____________ under the Finance Ministry came into effect from April 2017.
Department of Revenue
Its provision comes under the .
Income-tax act 1961
GAAR was initially proposed in the _________, although it was introduced into India in the Budget session of Parliament in 2012.
Direct Tax Code 2009
The GAAR was introduced in India after the Vodafone deal with _______. This deal took place in the Cayman Islands.
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.
GAAR is general where as _______ (SAAR) are special rules targeted at individual on case by case specific provisions.
Specific Anti Avoidance Rules
in gaar, there is no difference between
tax evasion and tax avoidance (all transactions that have the implication of avoiding tax can come under gaar scanner)
Financial Action Task Force (on Money Laundering) (FATF), also known by its French name,
Groupe d’action financière (GAFI)
when was fatf founded
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
Together, the _____________________ set the international standard for anti-money laundering measures and combating the financing of terrorism and terrorist acts.
Forty Recommendations on Money Laundering and eight (now nine) Special Recommendations on Terrorism Financing
