GLOBAL MINIMUM CORPORATE TAX: A PANACEA TO THE ISSUE OF BASE EROSION AND PROFIT SHIFTING
Nearly eight years have gone since the OECD unveiled the BEPS Action Plan, with Action 1 identifying corporate income tax concerns generated from the digitalization of the economy as an important area to address. The OECD's workflow has shifted as of the New Year. It would appear that a new age, dubbed "BEPS 2.0," has begun, with the motto of working on a "without prejudice" foundation and a two-pillar approach to find a global answer. While the author agrees that a coordinated response is necessary, she argues that developing countries' unique characteristics and policy preferences should be taken into account in designing the solution. In this context, the "Global Anti-Base Erosion (GloBE) proposal" of so-called "Pillar Two" is the subject of this contribution's evaluation. The author has tried to evaluate the Pillar Two Approach – i.e. need to implement the Global Minimum Corporate tax rate and its implication in the Indian milieu.
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