A Brand of CLT TECHNOLOGIES AND EDU-PUBLISHERS PRIVATE LIMITED
×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 14 October, 2019

  • 3 Min Read

A tax policy that could work

GS-IIII: A tax policy that could work.

Indian government desperate to raise more tax revenues. It missed its tax targets last fiscal year, (poor goods and services tax (GST) collections). Its declared budgetary target for the current year requires tax receipts to increase by around 25%, when the first quarter increase was only 6%.

MNCs Tax Evasion:

  • MNCs manage to avoid taxation in most countries, by shifting their declared costs and revenues through transfer pricing across subsidiaries, practices described as “base erosion and profit shifting” (BEPS).
  • Digital companies, some of the largest of which make billions of dollars in profits across the globe, but pay barely any taxes anywhere.
  • The International Monetary Fund has estimated that countries lose $500 billion a year because of this.

Base erosion and profit shifting (BEPS):

  • Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to “shift” profits from higher–tax jurisdictions to lower–tax jurisdictions, thus “eroding” the “tax–base” of the higher–tax jurisdictions
  • The Organisation for Economic Co-operation and Development (OECD) define BEPS strategies as also “exploiting gaps and mismatches in tax rules
  • Initiatives to curb BEPS by the OECD and the Trump administration have failed.

The OECD G20 Base Erosion and Profit Shifting Project (or BEPS Project):

  • It is an OECD/G20 project to set up an international framework to combat tax avoidance by multinational enterprises (“MNEs”) using base erosion and profit shifting tools
  • The aim of the project is to mitigate tax code loopholes and country-to-country inconsistencies so that corporations cannot shift profits from a country with a high corporate tax rate to countries with a low tax rate.
  • Implementation phase, 116 countries are involved, including a majority of developing countries.
  • The BEPS project looks to develop multilateral dialogue and could be achieved thanks to successful international cooperation, unavoidable when it comes to such a domestic and sovereign topic.

Conclusion:

A government that is currently ineffective in battling both economic slowdown and declining tax revenues cannot afford to neglect this crucial opportunity.

Source: THE HINDU


World bank logistic performance index 2023

India is now ranked 38th out of 139 nations in the Logistic Performance Index (LPI) 2023 of the World Bank. From its previous rankings of 44th in 2018 and 54th in 2014, this is a notable improvement. Earlier, the Logistics Ease Across Different States (LEADS) Report 2022 was published by the Ministry of Commerce and Industry. About Logi

Smuggling of Gold

Airports discovered more than 63% of this illegal gold. The Department of Revenue Intelligence recently conducted the Golden Dawn Operation across India, seizing 101.7 kg of illegal gold valued at Rs 51 crore. Despite the fact that India receives a legal import of about 800-1,000 tonnes of gold each year, the illicit market is thought to be

India-Thailand Relations

Both parties expressed satisfaction with the ongoing bilateral defence cooperation at the 8th India-Thailand Defence Dialogue, which was held in Bangkok, Thailand. Cultural ties and mutual cooperation that have been shaped by thousands of years of lasting historical and cultural ties characterise India and Thailand relations. Highlight

Translocation of Elephants

The Kerala government's appeal of the order of the Kerala High Court is rejected by the Supreme Court. The Kerala government's appeal against the Kerala High Court's directive to move Arikomban (Wild Elephant), the "rice tusker" of Munnar, to the Parambikulam tiger reserve was recently dismissed by the Supreme Court.

Global Buddhist Summit

Global Buddhist Summit In order to improve diplomatic and cultural ties with other nations, the Ministry of Culture recently organised the First Global Buddhist Summit 2023 in collaboration with the International Buddhist Confederation (IBC). About the summit "Responses to Contemporary Challenges: Philosophy to Praxis" is

Toppers

Search By Date

Post Feed

Newsletter Subscription
SMS Alerts

Important Links