– DAGTVA truth table –
DAGTVA® – Distribution of MNE profits
|No.||Problems exposed, requests, constraints and subjects||Origin||Pg||Li||Doc|
|47||Significantly strengthen legal certainty.||Pillar 1||8||52||RBRsj|
29. The new rules, taken together with existing transfer pricing rules (RBDpx – RBPpt), will need to deliver the agreed quantum of profit to market jurisdictions and do so in a way that is simple, avoids double taxation (RBPpi) – RBNdi), and significantly improves tax certainty (RBRsj – PLSju) relative to the current position.
To quote the RBSju page which deals with generalities in the field of legal certainty: » First, the notion of » legal certainty « is based, as its name suggests, on laws which guarantee this security, laws passed locally by sovereign States. Therefore, if we want to obtain an international consensus, in the case of a global system of taxation, we must make all the States of the world accept new laws and it is not a simple thing to do. States recalcitrant to fiscal transparency or having special interests will always be there to abort decisions that could be in the best interests of the majority of others and as William Morris PwC’s Deputy Global Tax Policy Leader says ,in a Bloombergtax.com article from July 28, 2020 , « There are 137 states with divergent interests in this project of a globalized tax system! »
If one does not want to be confronted with this problem, then one must use a system which is not above the laws but which is free from them or which does not need them, where accepted processes by, say a majority of States, would naturally impose themselves on others, forcing them to include themselves in the process , like a current of water which carries away whatever is in its path. This is what DAGTVA does which is a technical device, in which there are no laws, where it is impossible to prohibit the levying of a tax on a fund movement , an action which can be carried out by simple subtraction, one of the four basic operations and there can be no law to prohibit doing a subtraction!
As stated in the document: « Increased Tax Certainty delivered via a Three Tier Mechanism. The approach increases tax certainty (PLSju – PRSju) for taxpayers and tax administrations and consists of a three tier profit allocation mechanism, as follows » . We are talking about a mechanism and we have seen that DAGTVA is a technical device and therefore a mechanism that can be applied simply , without being able to oppose it, as no one can prevent an apple falling from the apple tree!