Mayur B. Nayak / Tarunkumar G. Singhal / Anil D. Doshi Chartered Accountants
In recent years,
there has been a flurry of developments in the International Taxation field in
the arena of taxation of Digital Economy, Preventing Base Erosion & Profit
Shifting (BEPS), particularly after publication of BEPS Reports in October 2015
and signature of Multilateral Instruments by various Tax Jurisdictions.
Investigations are being conducted by various affected Tax Jurisdictions
particularly into tax evasion and tax avoidance through the use of Offshore UK
Jurisdictions and other Tax Havens. In this issue, we have attempted to capture
such major developments of particular interest to Indian Tax payers and their
1.GOOGLE, APPLE, FACEBOOK AND AMAZON (GAFA) TAX- FRANCE'S NEW DIGITAL TAX ON TECH GIANTS
government's GAFA tax is being introduced to combat attempts by the firms to
avoid paying what is considered a "fair share" of taxes in the
country, by taking advantage of European tax laws.
With efforts to
reform a European Union (EU) tax law not bringing the desired results, France
is going to introduce from 1st January 2019 a digital tax on
technology giants such as Google, Facebook, Apple and Amazon. The new tax
regime is expected to bring in an estimated 500 million euro ($570 million) to
the country’s coffers for 2019. Major technology companies have come under the
scrutiny of lawmakers in countries like France and Britain for allegedly
routing profits through operations in countries with extremely low tax rates or
other arrangements. Earlier this year, the European Commission published
proposals for a three per cent tax on the revenues of major tech companies with
global revenues above 750 million euro a year and taxable EU revenue above 50
But to become law, EU tax reforms need the support of all member states. And
some countries, including Ireland, the Czech Republic, Sweden and Finland are
yet to come on board to bring the reforms.
2.EU’S EXPANDED TAX HAVEN BLACKLIST COULD APPLY TO US.