Foreign Tax Credit, MFN Clause & Non-Discrimination: A Deep Dive!
- Year of Publication: 2020
- ISBN: 0
Course Duration:
180 minutes (two episodes of 90 minutes each)
Module Background:
Over the years, the number, scope & complexity of contentious disputes with tax authorities around the world is increasing. Particularly w.r.t the International Tax Battlefield, a spotlight has been constantly cast on few vexed terms/clauses such as the Most Favored Nation [MFN] Clause, Foreign Tax Credit [FTC] & the Non-Discrimination Clause [Article 24 of the OECD Model Convention].
In this regard, it is pertinent to recapitulate the meaning & objectives of the said three terms starting with the MFN clause, which typically provides that where subsequent to the signing of treaty between two countries (first treaty), a treaty with a third country is entered into providing for a more beneficial provision, such benefit shall also apply to the first treaty. Next, w.r.t FTC, factoring the primary objective of elimination of double taxation, Section 91 provides for computation of doubly taxed income at the “Indian rate of income-tax” or “the rate of tax of the foreign country”, whichever is lower. Furthermore, a Non-Discrimination Clause in a DTAA, is primarily aimed at ensuring that companies do not levy additional burden on foreign investment vis-à-vis domestic investment.
What will the module cover?
In the light of this backdrop, Taxsutra in conjunction with Tax Stalwart P. V Srinivasan (Corporate Advisor & Former Tax Head, Wipro) has unveiled a module on “Foreign Tax Credit, MFN Clause & Non-Discrimination: A Deep Dive!!” In this module, the speaker has imparted comprehensive technical guidance regarding the nuances related to the said three terms respectively, while also highlighting several practical insights into arenas such as, (i) MFN Clauses in Indian Tax Treaties with Switzerland, Belgium, Sweden, France, Hungary, Netherlands, Spain, UK, (ii) Special Scenarios regarding FTC wherein tax policies are not aligned to DTAA, MAT, concept of Equitable Methodology, Dual Residency cases [where receipts are from a third state] etc. & (iii) Non-Discrimination Clause as per the OECD Model Convention related to, nationality, residential status based on PoEM, PE, expenses, ownership etc.
P V Srinivasan is a Chartered Accountant by qualification and a Member of ICAI. He is engaged as a corporate advisor, advising leading business houses on global taxation and corporate law matters. He has over 33 years of hands-on experience in manufacturing and information technology industries with regard to corporate tax compliances across tax jurisdictions including the US, Europe, India and Asia-Pacific, Latin America and Africa. He headed the Corporate Tax function at Wipro, Bangalore for over 18 years. He has secured landmark judgments on tax matters from Courts in India and overseas. He has represented and successfully concluded complex tax assessments in developed countries like USA, UK, Germany and Japan. He has participated as a member of Emerging Issues Task Force on non-resident taxation formed by the Ministry of Finance, Government of India. He was nominated on the expert panel of the working group on transfer pricing. He has contributed many papers and is a regular speaker on international taxation issues at various prestigious forums. He has been a visiting faculty at NADT, ICAI and ICSI.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
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- Year of Publication: 2020
- ISBN: 0
Course Duration:
180 minutes (two episodes of 90 minutes each)
Module Background:
Over the years, the number, scope & complexity of contentious disputes with tax authorities around the world is increasing. Particularly w.r.t the International Tax Battlefield, a spotlight has been constantly cast on few vexed terms/clauses such as the Most Favored Nation [MFN] Clause, Foreign Tax Credit [FTC] & the Non-Discrimination Clause [Article 24 of the OECD Model Convention].
In this regard, it is pertinent to recapitulate the meaning & objectives of the said three terms starting with the MFN clause, which typically provides that where subsequent to the signing of treaty between two countries (first treaty), a treaty with a third country is entered into providing for a more beneficial provision, such benefit shall also apply to the first treaty. Next, w.r.t FTC, factoring the primary objective of elimination of double taxation, Section 91 provides for computation of doubly taxed income at the “Indian rate of income-tax” or “the rate of tax of the foreign country”, whichever is lower. Furthermore, a Non-Discrimination Clause in a DTAA, is primarily aimed at ensuring that companies do not levy additional burden on foreign investment vis-à-vis domestic investment.
What will the module cover?
In the light of this backdrop, Taxsutra in conjunction with Tax Stalwart P. V Srinivasan (Corporate Advisor & Former Tax Head, Wipro) has unveiled a module on “Foreign Tax Credit, MFN Clause & Non-Discrimination: A Deep Dive!!” In this module, the speaker has imparted comprehensive technical guidance regarding the nuances related to the said three terms respectively, while also highlighting several practical insights into arenas such as, (i) MFN Clauses in Indian Tax Treaties with Switzerland, Belgium, Sweden, France, Hungary, Netherlands, Spain, UK, (ii) Special Scenarios regarding FTC wherein tax policies are not aligned to DTAA, MAT, concept of Equitable Methodology, Dual Residency cases [where receipts are from a third state] etc. & (iii) Non-Discrimination Clause as per the OECD Model Convention related to, nationality, residential status based on PoEM, PE, expenses, ownership etc.
P V Srinivasan is a Chartered Accountant by qualification and a Member of ICAI. He is engaged as a corporate advisor, advising leading business houses on global taxation and corporate law matters. He has over 33 years of hands-on experience in manufacturing and information technology industries with regard to corporate tax compliances across tax jurisdictions including the US, Europe, India and Asia-Pacific, Latin America and Africa. He headed the Corporate Tax function at Wipro, Bangalore for over 18 years. He has secured landmark judgments on tax matters from Courts in India and overseas. He has represented and successfully concluded complex tax assessments in developed countries like USA, UK, Germany and Japan. He has participated as a member of Emerging Issues Task Force on non-resident taxation formed by the Ministry of Finance, Government of India. He was nominated on the expert panel of the working group on transfer pricing. He has contributed many papers and is a regular speaker on international taxation issues at various prestigious forums. He has been a visiting faculty at NADT, ICAI and ICSI.
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
