Title – FIT/IBFD Joint Webinar Series

The Global Tax Landscape in 2021 and Beyond

Introduction

We are pleased to invite you to the FIT/IBFD Joint Webinar Series – The Global Tax Landscape in 2021 and Beyond. This event is online and available to all our international tax friends and clients both within and outside India. The online conference is a two-day event and will cover four unmissable topics.

The topics
Where do we stand on digital tax? Possible options, challenges and the road ahead. The debate on digital tax is far from over! While the technical proposals for Pillar 1 and Pillar 2 await consensus, digital tax remains the focus of the international landscape in 2021, given the proliferation of unilateral levies with the widest form of economic nexus test. This is further exacerbated by US trade commissioner action against select jurisdictions under section 301, labelling them as discriminatory. The OECD is expected to unveil its progress report in 2021. This session will debate the developments at the international and select jurisdictional levels.

Transfer pricing and ALP in a COVID world – A double whammy
“COVID-19 is a slingshot into 2023”. MNEs have accelerated their digital transformation journeys and reinvented their supply chains and go-to-market approaches. These changes have profound transfer pricing implications, arising from all-new business models giving rise to new forms of transactions, such as remote working. Similarly, there have been disruptions that have played out differently in different sectors – technology and healthcare companies have come out stronger, while those in the conventional automotive and consumer-durables sectors have seen a decline in consumer spending. Deceleration in growth is expected to lead to a significant decline in earnings.

The panel will address the OECD guidance on transfer pricing implications arising from COVID-19 and its implications for comparability analysis, allocation of costs and treatment of losses, effects of government assistance and impact on APAs.

Dispute resolution – Update on AP 14 – A problem chasing a solution

Is the OECD’s Action 14 a minimum standard, and to what extent has its efficacy been played out? With growing MAP cases and the resolution process getting longer in recent years, has it served the purpose it was meant to serve? The OECD’s initiative to seek public consultation is seen as a welcome step towards facilitating improvement. What have country experiences been in the wake of improvements to the MAP process and the strengthening of bilateral APA processes? Will mandatory arbitration remain a dream, or will jurisdictions embrace other changes to make dispute resolution effective? The panel will debate the OECD guidance and the policy stances of select jurisdictions for improving the dispute resolution process.

MLI – Rewriting the treaty network in the post-BEPS era
The MLI requires jurisdictions to introduce anti-abuse rules in DTAs by way of a PPT or PPT with SLOB or to enter bilateral negotiations for a detailed LOB provision. Several optional provisions for dealing with PE abuse are mentioned in the MLI. Will these changes lead to reconstructing the treaty network? To what extent have they led to rewriting DTAs to the extent of covered treaties, and what have been the experiences of countries that have notified the synthesized versions of DTAs? How will the inconsistencies in those versions be dealt with? The panel will debate these nuanced issues of the MLI and it’s impact.