{"id":8389,"date":"2020-12-07T09:23:47","date_gmt":"2020-12-07T08:23:47","guid":{"rendered":"http:\/\/www.dagtva.com\/?page_id=8389"},"modified":"2024-08-22T07:00:57","modified_gmt":"2024-08-22T06:00:57","slug":"rbsju-en","status":"publish","type":"page","link":"https:\/\/www.dagtva.com\/?page_id=8389","title":{"rendered":"MNE benefit RBSju"},"content":{"rendered":"

Proposal for a Global Taxation System<\/a><\/p>\n

DAGTVA\u00ae – Distribution of MNE profits<\/strong><\/span><\/p>\n\n\n\n\n
No.<\/strong><\/span><\/td>\n Problems exposed, requests, constraints and subjects<\/strong><\/span><\/td>\n Origin<\/strong><\/span><\/td>\n Pg<\/strong><\/span><\/td>\n Li<\/strong><\/span><\/td>\n Doc<\/strong><\/span><\/td>\n<\/tr>\n
31<\/td>\n L<\/span><\/span><\/strong>egal certainty \u2013 Arm\u2019s lenght principle<\/span><\/span><\/td>\n Pillar 1<\/td>\n 5<\/td>\n 41<\/td>\n RBSju<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Quote<\/strong><\/a> : Strengthening of legal certainty in tax matters implemented via a three-level mechanism<\/em><\/span><\/strong> . This approach strengthens legal certainty in tax matters<\/span> for taxpayers as well as for tax administrations and consists of a three-level profit sharing mechanism,<\/span>
\n<\/em><\/p>\n
\u2022 New Profit Allocation Rule going beyond the Arm\u2019s Length Principle<\/strong>. It creates a new profit allocation rule<\/span><\/span> (RBSju) applicable to taxpayers within the scope….<\/span><\/em><\/p>\n
First of all, the notion of \u00ab\u00a0legal security\u00a0\u00bb is based, as its name suggests, on laws guaranteeing 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 tax transparency or with special interests will always be there to abort decisions that might be in the better interests of the majority of others and as William Morris PwC’s Deputy Global Tax Policy Leader<\/em> says in a Bloombergtax \u200b\u200barticle .com of July 28, 2020<\/a><\/em> , <\/em>\u00ab\u00a0There are 137 states which have divergent interests in this project of a globalized taxation system<\/strong>\u00ab\u00a0<\/span> !<\/em><\/p>\n
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<\/span>, 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<\/span>, 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!<\/p>\n
As stated in the quote \u00ab\u00a0legal certainty in tax matters for taxpayers as well as for tax administrations, it consists of a mechanism<\/strong><\/span> for distributing profits<\/span>\u00a0\u00bb . <\/em>We are talking about a mechanism<\/span><\/strong> and we have seen that DAGTVA is a technical device and therefore a mechanism<\/span> that can be applied simply<\/a> , as no one can prevent an apple from falling from the apple tree! Apple may be not the good fruit to explain the process !<\/p>\n
Regarding the distribution of profits :<\/strong><\/span><\/p>\n
The DAGTVA transfer pricing calculation<\/a> takes into account in the \u00ab\u00a0Amount A<\/em><\/span>\u00a0\u00bb mechanism, not only residual profits, but also standard, routine and intangible profits, from the moment they are invoiced, they are treated for tax purposes in the same time of the transaction, it is the advantage of the transactional system where the totality of the taxation is definitively affected for the respective shares in each State where the commercial activity takes place<\/span><\/span>. And we are talking about direct taxation which can be levied without modifying existing local taxation laws. There is therefore nothing to renegotiate in this area of \u200b\u200bresponsibility of each sovereign state in the framework of a Global Single Taxation<\/span><\/span>. You will see in the balancing calculations of international taxation<\/a> set out in the document<\/a> , that only part of the indirect taxation, that which must be paid by the consumer in the market state, is returned to the latter, under conditions which can be very restrictive as in the \u201cAmount C<\/em><\/span>\u201d option.<\/p>\n
To leave the subject of this section on legal certainty<\/em><\/span> while remaining in the three-level mechanism, the \u201cAmount B<\/em><\/span>\u201d option\u00a0 becomes irrelevant with DAGTVA, the taxation as a whole being dealt with in the \u201cAmount A<\/em><\/span>\u201d option except for a part of its application which falls within the scope of the \u201cAmount C<\/em><\/span>\u201d option<\/span>, due constraints that should applied for no-respect the international guidelines in tax matters.<\/p>\n
The elimination of the \u201cAmount B<\/em><\/span>\u201d option also helps to simplify the system.<\/p>\n
Back to the truth table<\/a><\/p>\n
**********<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
Proposal for a Global Taxation System – DAGTVA truth table – DAGTVA\u00ae – Distribution of MNE profits No. Problems exposed, requests, constraints and subjects Origin Pg Li Doc 31 Legal certainty \u2013 Arm\u2019s lenght principle Pillar 1 5 41 RBSju … Continuer la lecture →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":7897,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-8389","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8389"}],"version-history":[{"count":10,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8389\/revisions"}],"predecessor-version":[{"id":11712,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/8389\/revisions\/11712"}],"up":[{"embeddable":true,"href":"https:\/\/www.dagtva.com\/index.php?rest_route=\/wp\/v2\/pages\/7897"}],"wp:attachment":[{"href":"https:\/\/www.dagtva.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}