Tax Policy in lockdown

Question 1

what is credit easing?

Answer 1

Credit easing is a group of unconventional monetary policy tools used by central banks to make credit and liquidity more readily available in times of financial stress.
[CENTRAL BANK POLICIES CREDIT DENA EASY KARTAT]

Question 2

what is fiscal stimulus?

Answer 2

When a government opts for a fiscal stimulus, it cuts taxes or increases its spending in a bid to revive the economy. When taxes are cut, people have more income at their disposal. An increase in disposable income means more spending in the country to boost economic growth.

[EITHER GOVERNMENT TAX KAMI KARTA OR SWATACHI SPENDING VADHVATA]

Question 3

What are tax treaties also called a Double Tax Agreement (DTA).?

Answer 3

[TO AVOID DOUBLE TAXATION]

When an individual or business invests in a foreign country, both countries – the source and the residence country may enter into a tax treaty to agree on which country should tax the investment income to prevent the same income from getting taxed twice.

models:
1. OECD Tax Model
2. U.N. Tax Treaty Model

Question 4

What is OECD Tax Model ?

Answer 4

requires the source country to give up some or all of its tax on certain categories of income earned by residents of the other treaty country. The two involved countries will benefit from such an agreement if the flow of trade and investment between the two countries is reasonably equal and the residence country taxes any income exempted by the source country.

Question 5

What is U.N. Tax Treaty Model?

Answer 5

Formally referred to as the United Nations Model Double Taxation Convention between developed and developing Countries. This favorable taxing scheme benefits developing countries receiving inward investment. It gives the source country increased taxing rights over the business income of non-residents compared to the OECD Model Convention.

[BENEFITS DEVELOPED COUNTRY IN THEIR TRANSACTION WITH DEVELOPED COUNTRIES]

Question 6

What is Tax information exchange agreements (TIEA)?

Answer 6

mutual agreement between countries that is a tax treaty variant specifically entered into by governments to exchange information relevant to the administration and enforcement of the domestic tax laws of the contracting parties.

to promote international cooperation in tax matters

provides for representatives of one country to undertake tax examinations in other countries.