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Q.3) What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India? (10 Marks)

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Swatantra

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“Mentor’s Comments”

  • https://www.thehindu.com/opinion/op-ed/a-far-reaching-tax-measure/article34711365.ece
  • In the intro, mention the factors such as unfair tax competition, tendencies of multi-national companies towards profits shifting for tax evasion etc. In the next part mention how India could benefit from such a tax as India loses 10 billion due to offshore structures.
  • Conclude by mentioning the need to avoid tax related trade war and unilateral levies in the global economy already battered by pandemic.

Comments

40 responses to “Q.3) What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India? (10 Marks)”

  1. Sakshi Jain Avatar
    Sakshi Jain

    #0000417593

    1. Swatantra Avatar
      Swatantra

      Sakshi

      Your introduction and factors that led to the demand are good. However, avoid mentioning EU, not sure all countries support, you can mention G7 instead.

      Don’t take such a blunt stand that India should or should not agree- even policymakers are not sure right now. You can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      And write in implications that India loses $10 billion annually due to tax erosion and profit shifting, so this might be a positive implication as companies will not shift their profit as there will be a minimum tax everywhere.

      Rest of the points are well written. Keep practicing. Avoid extreme statements unless you are specifically asked to take a view.

  2. Gauri Shankar Meena Avatar
    Gauri Shankar Meena

    Payment Id pay_HHlJ1R1WIIMdGT
    Please review

    1. Swatantra Avatar
      Swatantra

      Gauri Shankar

      You have written a decent answer. Introduction is good. In factors mention about companies shift their profit to tax havens- that is one of the main reasons.

      You can mention in implications that India loses $10 billion annually due to tax erosion and profit shifting, so this might be a positive implication as companies will not shift their profit as there will be a minimum tax everywhere. Rest of the points are good.

      In conclusion, you can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Read some other answers and Keep practicing.

  3. Anupam Singh Avatar
    Anupam Singh

    Red_id# 422544

    1. Swatantra Avatar
      Swatantra

      Anupam

      I think you have not understood the concept of global minimum corporate tax, you have written something very generic which is not much relevant to the question asked. Go through the article mentioned above and mentor’s comments.

      In introduction, write about global minimum corporate tax- what is it? Who is planning to introduce etc. Pandemic can be mentioned as one of the factors for introduction.

      Mention the factors such as unfair tax competition, (base erosion and profit shifting) tendencies of multi-national companies towards profits shifting for tax evasion etc. In the next part mention how India could benefit from such a tax as India loses 10 billion due to offshore structures. Mention how it impacts the sovereignty of the country in deciding tax policy.

      In conclusion, you can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      If you are facing any other issue, mention here- we will work on it together.

  4. Tanay Mishra Avatar
    Tanay Mishra

    Please Evaluate

    1. Swatantra Avatar
      Swatantra

      Tanay

      Mention the ID when you upload next.

      In introduction mention in one line what the tax is. Also don’t mention EU and India, India is still undecided, not sure all countries in EU are also on board, you can use G7.

      You can add ‘ unfair tax race to bottom’ as a factor, every country is lowering corporate tax to attract investments which is problematic. Rest of the points are good.

      Write some negative implications- interference in sovereignty as deciding tax policy is a domestic matter for the govt. US might be trying to balance out for their domestic problems. India needs to keep this in mind.
      Try to take a middle path in conclusion as the govt is still undecided. Write both pros and cons and in conclusion, you can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Read some other answers. Keep practicing.

  5. SUMITA DOWERAH Avatar
    SUMITA DOWERAH

    Payment Id
    pay HFrdyJMOEZ9967

    1. Swatantra Avatar
      Swatantra

      Sumita

      Your answer is well written. Introduction is good, mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit tax havens.

      Mention some negative implications also on India– such as impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently.

      Try to take a middle path in conclusion as the govt is still undecided. Write both pros and cons and in conclusion, you can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Read some other answers. Keep practicing.

  6. Sonal Sharma Avatar
    Sonal Sharma

    #0000422288
    Kindly evaluate.

    1. Swatantra Avatar
      Swatantra

      Sonal

      Answer is neat and clean with very good presentation. That itself is a bonus first of all.

      Introduction is good, mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.

      Mention some negative implications also on India– such as impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently.

      Try to take a middle path in conclusion as the govt is still undecided. Write both pros and cons and in conclusion, you can mention India should carefully weigh the pros and cons and take a decision in its national interest. However their is no stead and fast rule.

      Moreover, mention any decision on global issues need to be taken by consensus and not unilaterally.

      Good answer, keep it up.

  7. shivanshu pandey Avatar
    shivanshu pandey

    #0000416168 please check

    1. Swatantra Avatar
      Swatantra

      Shivanshu

      Define global minimum corporate tax in introduction and write that 10 billion dollar point as an impact on India. You should first give the impression that you know what the tax is all about.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.

      In implications, just write the implications- good and bad. Don’t give judgement whether India should accept or not, the question is not asking for your view- there are both positives and negatives and India hasn’t decided yet. So no need to take a side. You can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources.

      Read some other answers. Keep practicing.

  8. Deepali Rajan Avatar
    Deepali Rajan

    ref id: 0000420326

    1. Swatantra Avatar
      Swatantra

      Deepali

      Define global minimum corporate tax in introduction. This is a tax proposed by US and G7 countries, not India. So avoid mentioning that.

      For India, you just write what are the positive implications, what are the negative implications and in
      conclusion mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      Also, try to give sub-headings to different parts of the answer (introductions, factors, implications on India, way forward). Otherwise it looks like an essay with everything mixed up.

      Read some other answers. Keep improving.

  9. Shikhar Lohia Avatar
    Shikhar Lohia

    Payment ID – pay_HHRDszyfOKKRDw

    1. Swatantra Avatar
      Swatantra

      Shikhar,

      Very good answer. Most of the people haven’t written this one well. Keep it up.

      You can add ‘ unfair tax race to bottom’ as a factor, every country is lowering corporate tax to attract investments which is problematic.

      You can mention in implications that India loses $10 billion annually due to tax erosion and profit shifting, so this might be a positive implication as companies will not shift their profit as there will be a minimum tax everywhere.

      You have understood the demands of the question well. Keep practicing.

  10. vamsidhar namburi Avatar
    vamsidhar namburi

    #0000422551
    Please review @Swantanta sir

    1. Swatantra Avatar
      Swatantra

      Vamsidhar,

      You have understood the demands of the question well.

      In introduction don’t use the word ‘uniform’, use ‘minimum’.Countries won’t have uniform tax rate, they will have to fix a minimum below which the rate can’t be fixed, above it they can fix whatever they like.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.
      Second part of the answer is well written.

      Keep writing. Keep improving.

  11. Mradul sharma Avatar
    Mradul sharma

    ref id #0000422539. please review

    1. Swatantra Avatar
      Swatantra

      Mradul

      Very good answer. Most of the people haven’t written this one well. Keep it up.

      Don’t write EU is opposing it, you can mention many countries are undecided– there has been support from both G7 and OECD countries.

      Rest of the answer is good. Just keep writing and keep improving.

  12. Kartikey Singh Avatar
    Kartikey Singh

    pay_HHogiMPYpQ87sC

    1. Swatantra Avatar
      Swatantra

      Kartikey

      Introduction and first part is very well written.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.

      For India, you just write what are the positive implications, what are the negative implications and in
      conclusion mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      Keep writing. Keep improving.

  13. Rupesh Kumar Pandey Avatar
    Rupesh Kumar Pandey

    Ref Id #0000416426
    Please review

    1. Swatantra Avatar
      Swatantra

      Rupesh

      You haven’t adequately addressed the first part of the question. Write what you understand by global minimum corporate tax(define it) and mention factors why countries like US are trying to bring this. Factors such as unfair tax competition, tendencies of multi-national companies towards profits shifting for tax evasion etc. Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.

      Points about India can be mentioned in the 2nd part.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      Conclusion is good. Keep writing. Keep improving.

  14. Santosh kharat Avatar
    Santosh kharat

    Payment I’d 115009045817

    1. Swatantra Avatar
      Swatantra

      Santosh,

      Introduction and first part is very well written.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens. Also avoid repeating points. Point1 and point4 under factors are same only.

      For India, you just write what are the positive implications, what are the negative implications and in
      conclusion mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      Also, try to work a bit on your grammar skills Santosh. It is necessary to have a good impression on the examiner.

      Keep writing. Keep practicing.

  15. Utkarsha Yadav Avatar
    Utkarsha Yadav

    Please Review
    Payment Id pay_HHWzC2O9xhkaqA

    1. Swatantra Avatar
      Swatantra

      Utkarsha

      In the introduction tell what is global minimum corporate tax rate, provide a simple definition and origin of the concept. What you have written in introduction can be on of the factors why there is a demand for global minimum corporate tax rate. Rest of the points are good.

      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      In conclusion you can mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      Read some other answers. Keep improving

  16. Arpit Singh Avatar
    Arpit Singh

    Payment id HHU8LODcXby9Db

    1. Swatantra Avatar
      Swatantra

      Arpit

      Define global minimum corporate tax in introduction.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.
      Rest of the points are well written.
      Some negative implications on India– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      In conclusion you can mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      Read some other answers. Keep improving

  17. Harshaa Sharma Avatar
    Harshaa Sharma

    Idpay_HJ2s89guguFYwg

    1. Swatantra Avatar
      Swatantra

      Harshaa

      First of all write in 2 pages. Give sub headings, address all parts of the question. It seems you have just written in one flow whatever you knew and then stopped.

      Define global minimum corporate tax in introduction.

      For India, write what are the positive implications, what are the negative implications and in
      conclusion mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus. These are the core demands of the question.

      Take help from the above attached article and mentor’s comments.

      Also read some other answers. Try to improve.

  18. Vishnu Agrawal Avatar
    Vishnu Agrawal

    Order id: 0000422561

    1. Swatantra Avatar
      Swatantra

      Vishnu

      You have understood the demands of the question well.

      Mention pandemic as one of the factors, because due to pandemic countries like US want to augment their tax resources and GMCT is a way to stop their companies to shift profit to tax havens.

      In implication mention how India could benefit from such a tax as India loses 10 billion due to offshore structures

      In conclusion you can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Read some other answers. Keep improving

  19. Jaya Ratnasami Avatar
    Jaya Ratnasami

    0000382105

    1. Swatantra Avatar
      Swatantra

      Jaya

      First part is very well written.

      For India, you just write what are the positive implications, what are the negative implications and in
      conclusion mention India should carefully weigh the pros and cons and take a decision in its national interest. Also , you can mention any final decision should be taken by global consensus.

      India could benefit from such a tax as India loses 10 billion due to offshore structures. You can mention this and hence it is better to stay neutral when our views haven’t been asked specifically. Leave it to the policymakers for now.

      Read some other answers to get different perspectives . Keep improving

  20. Vivek H Avatar
    Vivek H

    Payment Id : 115213946268

    1. Swatantra Avatar
      Swatantra

      Vivek

      Please try to rotate and then upload, it will be helpful. In introduction don’t use the word ‘uniform’, use ‘minimum’.Countries won’t have uniform tax rate, they will have to fix a minimum below which the rate can’t be fixed, above it they can fix whatever they like.

      You have written about the factors in good detail . That’s good.

      Some negative implications on India you can mention– impact on sovereignty to decide domestic tax policy, also India has already reduced corporate tax recently, it might further reduce India’s tax resources. Positives you have written.

      Conclusion is good.You can mention India should carefully weigh the pros and cons and take a decision in its national interest.

      Read some other answers to get different perspectives . Keep writing.

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