Tax administrators, others deliberate on solution over taxation of digital economy

New Delhi [India], June 2 : Indian tax administrators and policymakers have deliberated on the Inclusive Framework (IF)'s "Two-Pillar Solution" of OECD/G20 on the taxation of the digital economy and the global minimum tax.

Keeping in view the vision of Prime Minister Narendra Modi for India's G20 Presidency to attempt to voice the views of the Global South on important international issues, a two-day event on International Taxation was organised on June 1 and 2 at the National Academy of Direct Taxes (NADT), Nagpur, in collaboration with South Centre, a Geneva-based intergovernmental policy research think tank of 55 developing countries, including India.

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS) has agreed on the historic two-pillar solution to address the tax challenges arising from the digitalisation of the economy, according to a statement from the ministry of finance.

International tax experts from renowned multi-lateral organisations, including the United Nations Tax Committee, Tax Justice Network Africa, West African Tax Administration Forum (WATAF), and Independent Commission for Reform of International Corporate Taxation (ICRICT) enriched the Global South discourse on the Two-Pillar Solution, as panellists.

The G20-South Centre capacity-building event on International Taxation, titled 'Two Pillar Solution - Understanding the Implications for the Global South' comprised of two-panel discussions on the Two-Pillar Solution and its alternatives.

The discussions during the event focused on the ramifications of the Two-Pillar Solution for developing economies. The event also included a workshop on tax treaty negotiations.

According to the statement, this event is an initiative of the Indian Presidency to bolster capacity building for Indian tax officials of both senior and middle management levels in the area of International Taxation, with a global south perspective.

National Academy of Direct Tax (NADT), the apex training institute for the officers of the Indian Revenue Service, hosted the two-day Indian G20 Presidency event, the ministry said, adding that the event also included a cultural evening where the vibrant culture of the state of Maharashtra was showcased to the participants and concluded with an excursion for the foreign delegates to explore the rich heritage of Nagpur.