Digital Tax: Taking a step ahead and expanding the footprint!

The Organisation for Economic Co-operation and Development (OECD), in the process of providing an answer on taxation of digital economy, issued a public consultation document titled “Addressing the Tax Challenges of the Digitalisation of the Economy” on 13 February 2019. The consultation document provides an opportunity to the interested parties for putting down their views … More Digital Tax: Taking a step ahead and expanding the footprint!

Have undisclosed foreign assets and income? You could be prosecuted

The Indian Government has been, for a long time, seeking to curb the menace of black money especially that is hoarded overseas.  Mandating the reporting of foreign assets by a resident and ordinarily resident tax payer in the India Tax Return (ITR) from tax year 2011-12 onwards was an effort in this direction which strengthened … More Have undisclosed foreign assets and income? You could be prosecuted

Digital Tax: The journey so far and what lies ahead

“The hardest thing to understand in the world is the income tax”- Albert Einstein. The emergence of diverse business models in a digital economy and the responses (and proposed responses) of various governments to tax companies in this space are certainly vindicating Einstein! Some of such models include (spotted as of today and still evolving) … More Digital Tax: The journey so far and what lies ahead

GST audit – it is the time to reconcile

India has experienced the completion of its first financial year of the much-awaited Goods and Services Tax (GST) from 1 July 2017 to 31 March 2018. This contemporary regime held high aspirations digitally by mandating taxpayers to undertake transaction-level reporting of its business on to its information technology/Goods and Services Tax network (IT/GSTN) platform. It … More GST audit – it is the time to reconcile

Protocol amending India-China DTAA: Embracing the change!

India and China are two of the world’s oldest civilizations. Cultural and economic relations between China and India date back to ancient times. Despite political issues over the years, the relations between India and China have steadily improved and strengthened in various fields of mutual interest. Indian Prime Minister Narendra Modi and Chinese President Xi … More Protocol amending India-China DTAA: Embracing the change!

Can tax treaties be used to create a tax liability?

In India, it is a settled principle of law that the tax treaties cannot create more onerous obligations or liabilities independent of enabling provisions under the domestic law. As such, where any income is exempt under the provisions of domestic tax law, the tax treaty cannot create a fresh tax liability. Internationally, most of the … More Can tax treaties be used to create a tax liability?

Softening the GAAR blow, Canada style: A case study on adopting a nuanced approach to GAAR principles

General Anti-Avoidance Rules (GAAR) represents a set of rules that provide a tax authority the power to deny tax benefits when an arrangement is undertaken without any commercial purpose or substance (i.e., when the arrangement is planned to generate a tax benefit). GAAR, especially the Indian GAAR, is not limited in its application to specified … More Softening the GAAR blow, Canada style: A case study on adopting a nuanced approach to GAAR principles