– DAGTVA truth table –
DAGTVA® – Distribution of MNE profits
|No.||Problems exposed, requests, constraints and subjects||Origin||Pg||Li||Doc|
|33||Amount B – Fixed marketing remuneration.||Pillar 1||6||46||RBMbr|
Quote : 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:
‒ Amount B – a fixed remuneration for baseline marketing (RBMbr) and distribution functions that take place in the market jurisdiction;
With the precision of the DAGTVA transactional system about the calculation of transfer pricing, the notion of a necessarily approximate fixed compensation has no justification, as explained in the previous page RBMap dedicated to the « Amount A » option.
If this option of an arbitrary taxation were to be retained, each MNE would be obliged to sue the taxation authorities simply because the taxation applied could be unfair for some and favorable for others. Tax laws are intended to be egalitarian for all and in all cases do not reflect fair business reality. A notion of equality vis-à-vis the taxation defined in the Constitutions fore most in national tax systems of many States. Long before an international trial in this direction takes place, arbitrary taxation would be criticized by the guarantors of the Constitutions as contrary to the laws.
The « Amount B » option is therefore inapplicable at the national and international level and in this context, it will be impossible find a consensual solution in a World Single Taxation.
With DAGTVA, no new right to tax, there is no possibility of seeing a remuneration which could be arbitrarily fixed. This contributes to the simplification of a hoped for an international taxation system (related pages: RLSrl , PLSsy , RBAsm, RBAas , RBAps ).