Highlights of the IBFD and Tax Analysts Seminar in MumbaiDec-20-2019
- The 24th International Taxation Conference, a joint conference between the Foundation for International Taxation and IBFD, was held in Mumbai, India from 5 to 7 December 2019. This conference focused on Addressing the Global Tax Challenges Arising from Digitalization with a keynote topic of An Overview of and Likely New Issues under the OECD Agenda on Digital Economy (Action 1).
Ahead of the conference, on 4 December, IBFD and Tax Analysts held a highly successful seminar exploring the implications of the OECD global anti-base erosion proposal (Pillar II) for businesses and tax administrations.
On 31 May 2019, the OECD/G20 Inclusive Framework on BEPS set out an ambitious plan to reach a global agreement on taxing multinational enterprises in the digital era by the end of 2020. Divided into two pillars, Pillar II focuses on remaining BEPS issues through a global anti-base erosion (GLOBE) proposal that ensures companies pay a minimum amount of tax.
The Pillar II proposal seeks to address these challenges through the development of two interrelated rules:
- an income inclusion rule that would tax income of a foreign branch or a controlled entity if that income were subject to tax at an effective rate that is below a minimum rate; and
- a tax on base-eroding payments that would operate by way of a denial of a deduction or imposition of source-based taxation, together with any necessary changes to double tax treaties, for certain payments unless they are subject to tax at or above a minimum rate.
Belema Obuoforibo, Director of the Knowledge Centre and Member of the Executive Board, IBFD; Ridha Hamzaoui, Managing Principal, Middle East and North Africa, IBFD; Ameya Kunte, experienced tax professional; Walter Andreoni, Tax Partner, Mercanti Dorio e Associati and David Stewart, Editor in Chief Tax Notes Today International (Tax Analysts) and Host of the Tax Notes Talk Podcast, led the group in lively discussions that focused on the component parts of the Pillar II proposal and highlighting the possible challenges that the implementation of these proposals could face from both conceptual and practical standpoints.
A look ahead to the 25th International Taxation Conference
There are exciting changes planned for the International Taxation Conference as it celebrates its 25th year. IBFD and the Foundation for International Taxation, together with the OECD, have already begun work on a refreshed programme for 2020, tackling the key issues and tax topics in India and across the globe. The 2020 conference is sure to attract a broad, international audience and bring together global tax experts, academics, corporate representatives and revenue officials. We hope to see you there!