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

[Suresh Ramasubramanian]

You will find that even OECD guidelines are not adopted wholesale by any country that adopts them - they will specifically sign on to parts that they find acceptable, or specifically disclaim any that they don't accept.

As for the tax framework language, again - it entirely rests with countries whether or not they are to accept the language in them.  Quibbling about the wording's origins is as unproductive an exercise as is possible.

In any case, India already signed it in 2012.  So this discussion and the quotes of rather jingoistic posturing by a particular offiical appears moot to me.  

This seems to be yet another occasion where certain officials make certain statements (like Mr.Puri's article you sent across the other day) whereas the actions taken by the relevant ministry - in the form of ministerial statements, treaties signed etc, appear to tell a different story altogether.

http://www.thehindu.com/business/Economy/india-signs-international-tax-treaty/article2842560.ece

--srs (iPad)

On 06-Jul-2013, at 20:21, parminder <parminder at itforchange.net> wrote:

> 
> 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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