Proposal for a Global Taxation System
– DAGTVA truth table –
DAGTVA® – Distribution of MNE profits
|No.||Problems exposed, requests, constraints and subjects||Origin||Pg||Li||Doc|
|101||Ap – Mt C – the benefit already assigned for the amount A cannot be reassigned.||Pillar 1||16||23||RBMcb|
Quote : Appendix – Detailed proposal on profit allocation
Amount C – Generalities (RBAcg)
65. In relation to Amount C, it would also be important to ensure that the profit under Amount A could not (whether in whole or part) be duplicated in the market jurisdiction (RBMcb), for example based on an argument that some or all of the profit under Amount A is also in some way referable to the functional activity in the market jurisdiction which is rewarded by Amount C (RBMct). Further work on certain aspects of the detailed interaction of Amounts A and C would therefore be warranted.
It is impossible with the transactional taxation and the DAGTVA calculation of the transfer prices applied to the transaction open, on the one hand to a right of attribution of profit while the transaction is already taxed proportionally in the two States and, we have seen also that this possible situation could only be executed by the taxation authorities of one State towards another, and on the other hand, that from the moment when this transaction is correctly taxed in both States, it seems impossible that the MNE is once again imposed, and that under the amount C, the possible dispute was not settled upstream between taxing authorities.