[governance] governments-target-tech-giants-tax-avoidance

[parminder]

On Saturday 06 July 2013 12:21 PM, michael gurstein wrote:
> http://ca.news.yahoo.com/governments-target-tech-giants-tax-avoidance-draft-
> 184553496.html

There seem to here be a recognition that inter-jurisdictional tax issues 
related to global tech companies is a special issue, even such issues 
also arising for other sectors (like with the case of starbucks in the 
UK).... This is important..


Secondly, it is neither OECD's nor G 20's (which incidentally included 
India) job to discuss and decide on such a global issue. This is 
essentially undemocratic. This kind of thing should be done at a UN body.

Also, it is completely against the view India recently took, which was 
supported by other developing countries in the G 20 like Brazil and 
China....

To quote from their letter to the UN

    "In a 'letter from India' (reproduced below), also published on the
    ECOSOC website, Sanjay Kumar Mishra, Joint Secretary of the Central
    Board of Direct Taxes - part of the Department of Revenue in India's
    Ministry of Finance - said the OECD Model Tax Convention and the
    OECD Transfer Pricing Guidelines had been developed 'on the basis of
    consensus arrived at by the government of 34 countries (all
    developed countries)'."

    "It was 'inconceivable', he said, 'as to how a standard developed by
    government of only 34 countries can be accepted by government of
    other countries as "standard" of sharing of revenue on international
    transactions between source and resident country, particularly when
    it only takes care of the interest of developed countries and has
    seriously restricted the taxing powers of source country'."

    "A covering note from India's Ambassador to the UN indicated that
    the letter conveyed the Indian government's views on the
    Secretary-General's report. The members of the UN tax committee from
    China and Brazil 'generally supported' the Indian government's
    position on this issue,......."

    (quote ends)

http://twnside.org.sg/title2/resurgence/2012/268/cover04.htm

The above is an excerpt from the letter written by the Indian government 
in context of a report of the UN Secretary General on the issue, which 
inter alia observed

    " 'The UN, thanks to its universal membership and its legitimacy,
    can be a catalyst for increased international cooperation in tax
    matters for the benefit of developed and developing countries alike.
    Since the great majority of UN Member States are not members of
    either OECD or the G20, it is the role of the UN to ensure the
    active participation of developing countries, including the least
    developed countries, in international tax cooperation activities,
    which will ultimately be of benefit to them. /*Only if this level
    playing field is achieved, can enhanced tax cooperation be truly
    respected as global.'*//*"*/ (emphasis added)







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