W.S.T. truth table

Proposal for a Global Taxation System

 – DAGTVA truth table –

Important note: for the moment all rubrics and documents in link with this DAGTVA truth table, only the first 67 over 102 are translated from the French version. The others in English are taking in account by Google Automatic Translator, thanks for it to take the relay.

In case of translation problem, thank you to refer to the French original version if it necessary. This will be automatically presented inside the rubrics by selecting a word inside the sentence where the problem is.

From the OECD document “Unified Approach” – Pillar 1

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DAGTVA® – Prerequisites for the taxation system

No. Problems exposed, requests, constraints and subjects Origin Pg Li Doc
1 The tax system Universel must be indépendant models policies. Dagtva / / PLUip
2 The Universal tax system compatible with the tax models already in use. Dagtva / / PLUma
3 The Universal tax system must not have emprise on a State. Dagtva / / PLUde
4 The Universal tax system must not modify existing federation of States. Dagtva / / PLUpf
5 Right to tax in market Juridiction. Pillar 1 4 40 PDDju
6 Simplicity, stabilisation of tax sytem. Pillar 1 4 43 PLSsy
7 Legal certainty in implementation of tax matters Pillar 1 4 44 PLSju
8 Strengthening legal security. Pillar 1 5 49 PRSju
9 The system Universel must be compatible and usable in USA. MTC / / PLUcm
10 If the tax system is unusable in USA, it will not exist. MTC / / PSSip

DAGTVA® – Scope of the taxation system

No. Problems exposed, requests, constraints and subjects Origin Pg Li Ref.
11 General Scope. Pillar 1 7 6 CACag
12 Digital / non-digital business models. Pillar 1 5 30 CAMnu
13 Narrow relations between businesses and consumers.
Pillar 1 7 21 CARet
14 Sector excluded (Financial Services). Pillar 1 7 29 CASex
15 Limitations based on company size.
Pillar 1 7 30 CALft
16 Turnover threshold – international declarations. Pillar 1 7 32 CASch

DAGTVA® – The link rules of the taxation system

No. Problems exposed, requests, constraints and subjects Origin Pg Li Ref.
17 New rule of the link without physical presence condition. Pillar 1 5 35 RLPph
17a Whole sectors of the digital economy aside. Pillar 1 6 15 RLPen
17b New link rule. Pillar 1 6 18 RLNrl
18 WST – Narrow definition, processing – direct / indirect collection of payment by MPF MTC 3 34 RLDet
19 WST – large Definition – treatment / direct collection / indirect payment. MTC 3 35 RLDli
20 Simplification new link rule. Pillar 1 4 48 RLSrl
21 New link rule coupled with turnover threSholds (1). Pillar 1 5 36 RLSca
22 New link rules applicable to modeste economies. Pillar 1 5 37 RLEmo
23 New link rule applicable by autonomous agreement.
Pillar 1 5 38 RLCau
24 Circumvention of physical presence rules Pillar 1 6 23 RLCpp
25 No-taxation without permanent establishment with physical presence Pillar 1 7 36 RLNet
26 New rule with sale thresholds to be defined (2). Pillar 1 9 19 RLSad
26a New link rule – Threshold would also take into account certain activities. Pillar 1 8 9 RLNac
27 Provisions Possible – applicable to groups. Pillar 1 8 15 RLPag
27a Guarantee neutralité of treatment between different business models. Pillar 1 8 17 RLGnt

DAGTVA® – Distribution of MNE profits

No. Problems exposed, requests, constraints and subjects Origin Pg Li Doc
28 Respect of arm’s length principle “Unified approach”. Pillar 1 5 45 RBRpc
29 Respect for the arm’s length principle of the current Standards. Pillar 1 5 45 RBNac
30 Possible provisions – Determination of transfer prices. Pillar 1 5 45 RBDpx
31 Legal certainty – Arm’s lenght principle.
Pillar 1 5 41 RBSju
32 Amount A – Fraction of the presumed residual profit. Pillar 1 6 3 RBMap
33 Amount B – Fixed marketing remuneration. Pillar 1 6 5 RBMbr
34 Amount C – additional benefits. Pillar 1 6 8 RBMcs
35 New rules for distribution of profits – General concepts. Pillar 1 6 19 RBNge
35a Non-standard profits derived from intangible assets.
Pillar 1 6 35 RBIns
36 Solution for emerging and developing countries Pillar 1 6 39 RBSpg
37 Rules for the distribution of Profits – General concepts. Pillar 1 8 20 RBRge
38 Right to tax Non residents – UN / OCDE article 7/8/9. Pillar 1 8 23 RBNar
39 Rights to impose Residents & Subsidiaries – UN / OECD Article 7/8/9. Pillar 1 8 28 RBRfa
40 Majority of tax disputes involving MNEs.
Pillar 1 8 33 RBMdf
41 Attribution profits under the new link. Pillar 1 8 37 RBAbt
42 Creation of a link even in the absence of physical presence. Pillar 1 8 36 RBEla
43 Mt A – Set new rules of profit distribution. Pillar 1 8 39 RBMar
44 Possible provisions – transfer pricing & double taxation. Pillar 1 8 53 RBPpi
45 New proposed standards – double taxation. Pillar 1 8 52 RBNdi
46 Possible provisions – transfer pricing. Pillar 1 8 50 RBPpt
47 Significantly strengthen legal certainty. Pillar 1 8 52 RBRsj
48 Applicables to both benefits and losses. Pillar 1 9 5 RBAtb
49 Mt A fraction of the presumed residual profit of the EMN group. Pillar 1 9 10 RBMaf
50 Mt A – Fraction of residual profit ‘ grosso modo’. Pillar 1 9 10 RBMag
51 Mt A – Repartition key based on sales. Pillar 1 9 17 RBMac
52 Mt AConsensus between members of the Inclusive Framework. Pillar 1 9 18 RBMai
53 Mt B – Distribution functions always taxable Article 7. Pillar 1 9 21 RBMbf
54 Mt B – transfer prices on the arm’s length principle Article 7. Pillar 1 9 22 RBMbp
55 Mt B – Dissatisfaction with the current transfer pricing rules. Pillar 1 9 26 RBMbm
56 Mt B – fixed marketing remuneration. Pillar 1 9 24 RBMbo
57 Mt C mechanisms binding and effective dispute resolution. Pillar 1 9 31 RBMcm
58 Mt C – based on local benchmark activity and fixed yield Mt B. Pillar 1 9 33 RBMcf
59 Qe – possible use of regional segmentation or by branch of activity. Pillar 1 9 44 RBQrb
60 Qe – problematics treatment of losses, and determination of location. Pillar 1 9 45 RBQpt
61 Qe – benefit to market jurisdictions and digital business model. Pillar 1 9 51 RBQbj
62 Qe – multilatéral agreement on profits to market jurisdictions amount A. Pillar 1 10 11 RBQam
63 Qe – choice of the amount to be reallocated will ultimately be the result of a political agreement. Pillar 1 10 14 RBQcm
64 Qe – dispositions MNE double taxation provisions by entity and country. Pillar 1 10 20 RBQdd
65 Qe – in a group of MNEs holding Mt A benefits. Pillar 1 10 23 RBQdg
66 Qe – existing mechanisms for the elimination of double taxation. Pillar 1 10 26 RBQme
67 Qe – rules of relief double taxation in the « unified approach ». Pillar 1 10 27 RBQrd
68 Qe – overlaps of the three types of taxable profits (A, B and C). Pillar 1 10 30 RBQct
68a Qe – a recovery or « compensation » mechanism. Pillar 1 10 33 RBQrc
69 Qe – complex obligations with amount A for a non-resident entity. Pillar 1 10 42 RBQoc
70 Qe – withholding tax as a collection mechanism for  » Amount A « . Pillar 1 10 44 RBQrs
71 Qe – agree on the characteristics of the withholding tax system.
Pillar 1 10 46 RBQsc
72 Qe – taxation of a non-resident company and tax treaties.
Pillar 1 11 3 RBQie
72a Illustration – the group X is a group of MNEs. Pillar 1 11 9 RBIst
73 Ap – increase in the amount of profit attributed to market jurisdictions.
Pillar 1 13 11 RBAam
73a Ap – Amount A Generalities. Pillar 1 13 18 RBAag
74 Ap – presumed residual profit of an MNE at group or branch level. Pillar 1 13 21 RBAbp
75 Ap – presumed standard or routine profit based on assumptions.
Pillar 1 13 25 RBAbs
76 Ap – Appendix –  isolate non-standard benefits generated. Pillar 1 13 36 RBAin
77 Ap – simplify implementation and build consensus among members. Pillar 1 13 40 RBAsm
78 Ap – profit break-even point & transfer pricing rules.
Pillar 1 13 45 RBAsr
79 Ap – tax income from activities physically carried out in the territory.
Pillar 1 13 42 RBAir
80 Ap – Amount A – Consolidated Financial Statements – GAAP – IRFS. Pillar 1 14 5 RBAae
81 Ap – calculate benefits by industry, region and / or market. Pillar 1 14 13 RBAcb
82 Ap – calculate of amount A on the basis of an agreed level of profitability. Pillar 1 14 25 RBAcm
83 Ap – simplified approach, agree on a different % depending on the sector. Pillar 1 14 30 RBAas
84 Ap – benefits excluded from the mass of profits to be reallocated to the markets. Pillar 1 14 28 RBAbe
85 Ap – principles of simplification for calculating profit. Pillar 1 14 42 RBAps
86 Ap – fraction of benefits attributed to the jurisdiction of the market. Pillar 1 15 6 RBAfb
87 Ap – fraction benefits non-standard attribute to the market and % international. Pillar 1 15 14 RBAbi
88 Ap – agreement on the method of calculating   ‘ w ‘. Pillar 1 15 23 RBAmw
89 Ap – distributed profits (ie w %) between the juridictions the eligible market. Pillar 1 15 28 RBAwj
90 Ap – evaluate an approximately adequate profit.
Pillar 1 15 29 RBAea
91 Ap – simplified approach based on a fixed % application formula.
Pillar 1 15 37 RBAff
92 Ap – Amount B Generalities. Pillar 1 15 39 RBAbg
93 Ap – Mt Bfixed return to be evaluated at the level of profitability.
Pillar 1 15 41 RBMbe
94 Ap – Mt B – Fixed performance & reduce double taxation risks. Pillar 1 15 46 RBAbr
95 Ap – Mt B define the activities that give rise to a fixed yield. Pillar 1 16 3 RBAbd
96 Ap – Amount C Generalities. Pillar 1 16 7 RBAcg
97 Ap – Mt C objections on sales and distribution activities. Pillar 1 16 10 RBMco
98 Ap – Mt Cdispute settlement measures.
Pillar 1 16 15 RBMcr
99 Ap – Mt C double taxation RBPpi, RBNdi, RBQdd, RBQme, RBQrd, RBAbr. Pillar 1 16 16 RBMcd
100 Ap – Mt Cmandatory and effective procedures for settling disputes.
Pillar 1 16 20 RBMcp
101 Ap – Mt C – the benefit already assigned for the amount A cannot be reassigned. Pillar 1 16 23 RBMcb
102 Ap – Mt Cbenefit for amount A which gives entitlement to amount C.
Pillar 1 16 25 RBMct

Mt A = Amount A,  Mt B = Amount B,  Mt C = Amount C, Qe = Questions,   Ap = Apendice, MNE Multi National Enterprise