Jan 04, 2020
Tax regime globally, as well as in India, is heading for some significant changes
While tax tinkering will continue to dominate the discourse at least till the Budget, one question hangs in the air: has ‘tax terrorism’ abated at all? As we survey the global economy, the two things that stand out is the evolution of digital economy, and the consistent tug-of-war between multinational corporations (MNCs) and tax authorities on the adequacy of taxes paid in each country they operate. Enhanced digital economies across the world have virtually created a borderless world where the physical presence of companies has lost relevant. The role of tax havens where servers can be located makes the task of a tax authority even more difficult.