Proposal for a Global Taxation System
– DAGTVA truth table –
From the OECD document “Unified Approach” – Pillar 1
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DAGTVA® – Prerequisites for the taxation system
| No. | Problems exposed, requests, constraints and subjects | Origin | Pg | Li | Doc |
| 1 | The tax system Universel must be indépendant models policies. | Dagtva | / | / | PLUip |
| 2 | The Universal tax system compatible with the tax models already in use. | Dagtva | / | / | PLUma |
| 3 | The Universal tax system must not have emprise on a State. | Dagtva | / | / | PLUde |
| 4 | The Universal tax system must not modify existing federation of States. | Dagtva | / | / | PLUpf |
| 5 | Right to tax in market Juridiction. | Pillar 1 | 4 | 40 | PDDju |
| 6 | Simplicity, stabilisation of tax sytem. | Pillar 1 | 4 | 43 | PLSsy |
| 7 | Legal certainty in implementation of tax matters | Pillar 1 | 4 | 44 | PLSju |
| 8 | Strengthening legal security. | Pillar 1 | 5 | 49 | PRSju |
| 9 | The system Universel must be compatible and usable in USA. | MTC | / | / | PLUcm |
| 10 | If the tax system is unusable in USA, it will not exist. | MTC | / | / | PSSip |
DAGTVA® – Scope of the taxation system
| No. | Problems exposed, requests, constraints and subjects | Origin | Pg | Li | Ref. |
| 11 | General Scope. | Pillar 1 | 7 | 6 | CACag |
| 12 | Digital / non-digital business models. | Pillar 1 | 5 | 30 | CAMnu |
| 13 | Narrow relations between businesses and consumers. |
Pillar 1 | 7 | 21 | CARet |
| 14 | Sector excluded (Financial Services). | Pillar 1 | 7 | 29 | CASex |
| 15 | Limitations based on company size. |
Pillar 1 | 7 | 30 | CALft |
| 16 | Turnover threshold – international declarations. | Pillar 1 | 7 | 32 | CASch |
DAGTVA® – The link rules of the taxation system
| No. | Problems exposed, requests, constraints and subjects | Origin | Pg | Li | Ref. |
| 17 | New rule of the link without physical presence condition. | Pillar 1 | 5 | 35 | RLPph |
| 17a | Whole sectors of the digital economy aside. | Pillar 1 | 6 | 15 | RLPen |
| 17b | New link rule. | Pillar 1 | 6 | 18 | RLNrl |
| 18 | WST – Narrow definition, processing – direct / indirect collection of payment by MPF | MTC | 3 | 34 | RLDet |
| 19 | WST – large Definition – treatment / direct collection / indirect payment. | MTC | 3 | 35 | RLDli |
| 20 | Simplification new link rule. | Pillar 1 | 4 | 48 | RLSrl |
| 21 | New link rule coupled with turnover threSholds (1). | Pillar 1 | 5 | 36 | RLSca |
| 22 | New link rules applicable to modeste economies. | Pillar 1 | 5 | 37 | RLEmo |
| 23 | New link rule applicable by autonomous agreement. |
Pillar 1 | 5 | 38 | RLCau |
| 24 | Circumvention of physical presence rules | Pillar 1 | 6 | 23 | RLCpp |
| 25 | No-taxation without permanent establishment with physical presence | Pillar 1 | 7 | 36 | RLNet |
| 26 | New rule with sale thresholds to be defined (2). | Pillar 1 | 9 | 19 | RLSad |
| 26a | New link rule – Threshold would also take into account certain activities. | Pillar 1 | 8 | 9 | RLNac |
| 27 | Provisions Possible – applicable to groups. | Pillar 1 | 8 | 15 | RLPag |
| 27a | Guarantee neutralité of treatment between different business models. | Pillar 1 | 8 | 17 | RLGnt |
DAGTVA® – Distribution of MNE profits
| No. | Problems exposed, requests, constraints and subjects | Origin | Pg | Li | Doc |
| 28 | Respect of arm’s length principle “Unified approach”. | Pillar 1 | 5 | 45 | RBRpc |
| 29 | Respect for the arm’s length principle of the current Standards. | Pillar 1 | 5 | 45 | RBNac |
| 30 | Possible provisions – Determination of transfer prices. | Pillar 1 | 5 | 45 | RBDpx |
| 31 | Legal certainty – Arm’s lenght principle. |
Pillar 1 | 5 | 41 | RBSju |
| 32 | Amount A – Fraction of the presumed residual profit. | Pillar 1 | 6 | 3 | RBMap |
| 33 | Amount B – Fixed marketing remuneration. | Pillar 1 | 6 | 5 | RBMbr |
| 34 | Amount C – additional benefits. | Pillar 1 | 6 | 8 | RBMcs |
| 35 | New rules for distribution of profits – General concepts. | Pillar 1 | 6 | 19 | RBNge |
| 35a | Non-standard profits derived from intangible assets. |
Pillar 1 | 6 | 35 | RBIns |
| 36 | Solution for emerging and developing countries | Pillar 1 | 6 | 39 | RBSpg |
| 37 | Rules for the distribution of Profits – General concepts. | Pillar 1 | 8 | 20 | RBRge |
| 38 | Right to tax Non residents – UN / OCDE article 7/8/9. | Pillar 1 | 8 | 23 | RBNar |
| 39 | Rights to impose Residents & Subsidiaries – UN / OECD Article 7/8/9. | Pillar 1 | 8 | 28 | RBRfa |
| 40 | Majority of tax disputes involving MNEs. |
Pillar 1 | 8 | 33 | RBMdf |
| 41 | Attribution profits under the new link. | Pillar 1 | 8 | 37 | RBAbt |
| 42 | Creation of a link even in the absence of physical presence. | Pillar 1 | 8 | 36 | RBEla |
| 43 | Mt A – Set new rules of profit distribution. | Pillar 1 | 8 | 39 | RBMar |
| 44 | Possible provisions – transfer pricing & double taxation. | Pillar 1 | 8 | 53 | RBPpi |
| 45 | New proposed standards – double taxation. | Pillar 1 | 8 | 52 | RBNdi |
| 46 | Possible provisions – transfer pricing. | Pillar 1 | 8 | 50 | RBPpt |
| 47 | Significantly strengthen legal certainty. | Pillar 1 | 8 | 52 | RBRsj |
| 48 | Applicables to both benefits and losses. | Pillar 1 | 9 | 5 | RBAtb |
| 49 | Mt A – fraction of the presumed residual profit of the EMN group. | Pillar 1 | 9 | 10 | RBMaf |
| 50 | Mt A – Fraction of residual profit ‘ grosso modo’. | Pillar 1 | 9 | 10 | RBMag |
| 51 | Mt A – Repartition key based on sales. | Pillar 1 | 9 | 17 | RBMac |
| 52 | Mt A – Consensus between members of the Inclusive Framework. | Pillar 1 | 9 | 18 | RBMai |
| 53 | Mt B – Distribution functions always taxable Article 7. | Pillar 1 | 9 | 21 | RBMbf |
| 54 | Mt B – transfer prices on the arm’s length principle Article 7. | Pillar 1 | 9 | 22 | RBMbp |
| 55 | Mt B – Dissatisfaction with the current transfer pricing rules. | Pillar 1 | 9 | 26 | RBMbm |
| 56 | Mt B – fixed marketing remuneration. | Pillar 1 | 9 | 24 | RBMbo |
| 57 | Mt C – mechanisms binding and effective dispute resolution. | Pillar 1 | 9 | 31 | RBMcm |
| 58 | Mt C – based on local benchmark activity and fixed yield Mt B. | Pillar 1 | 9 | 33 | RBMcf |
| 59 | Qe – possible use of regional segmentation or by branch of activity. | Pillar 1 | 9 | 44 | RBQrb |
| 60 | Qe – problematics treatment of losses, and determination of location. | Pillar 1 | 9 | 45 | RBQpt |
| 61 | Qe – benefit to market jurisdictions and digital business model. | Pillar 1 | 9 | 51 | RBQbj |
| 62 | Qe – multilatéral agreement on profits to market jurisdictions amount A. | Pillar 1 | 10 | 11 | RBQam |
| 63 | Qe – choice of the amount to be reallocated will ultimately be the result of a political agreement. | Pillar 1 | 10 | 14 | RBQcm |
| 64 | Qe – dispositions MNE double taxation provisions by entity and country. | Pillar 1 | 10 | 20 | RBQdd |
| 65 | Qe – in a group of MNEs holding Mt A benefits. | Pillar 1 | 10 | 23 | RBQdg |
| 66 | Qe – existing mechanisms for the elimination of double taxation. | Pillar 1 | 10 | 26 | RBQme |
| 67 | Qe – rules of relief double taxation in the « unified approach ». | Pillar 1 | 10 | 27 | RBQrd |
| 68 | Qe – overlaps of the three types of taxable profits (A, B and C). | Pillar 1 | 10 | 30 | RBQct |
| 68a | Qe – a recovery or « compensation » mechanism. | Pillar 1 | 10 | 33 | RBQrc |
| 69 | Qe – complex obligations with amount A for a non-resident entity. | Pillar 1 | 10 | 42 | RBQoc |
| 70 | Qe – withholding tax as a collection mechanism for « Amount A » . | Pillar 1 | 10 | 44 | RBQrs |
| 71 | Qe – agree on the characteristics of the withholding tax system. |
Pillar 1 | 10 | 46 | RBQsc |
| 72 | Qe – taxation of a non-resident company and tax treaties. |
Pillar 1 | 11 | 3 | RBQie |
| 72a | Illustration – the group X is a group of MNEs. | Pillar 1 | 11 | 9 | RBIst |
| 73 | Ap – increase in the amount of profit attributed to market jurisdictions. |
Pillar 1 | 13 | 11 | RBAam |
| 73a | Ap – Amount A – Generalities. | Pillar 1 | 13 | 18 | RBAag |
| 74 | Ap – presumed residual profit of an MNE at group or branch level. | Pillar 1 | 13 | 21 | RBAbp |
| 75 | Ap – presumed standard or routine profit based on assumptions. |
Pillar 1 | 13 | 25 | RBAbs |
| 76 | Ap – Appendix – isolate non-standard benefits generated. | Pillar 1 | 13 | 36 | RBAin |
| 77 | Ap – simplify implementation and build consensus among members. | Pillar 1 | 13 | 40 | RBAsm |
| 78 | Ap – profit break-even point & transfer pricing rules. |
Pillar 1 | 13 | 45 | RBAsr |
| 79 | Ap – tax income from activities physically carried out in the territory. |
Pillar 1 | 13 | 42 | RBAir |
| 80 | Ap – Amount A – Consolidated Financial Statements – GAAP – IRFS. | Pillar 1 | 14 | 5 | RBAae |
| 81 | Ap – calculate benefits by industry, region and / or market. | Pillar 1 | 14 | 13 | RBAcb |
| 82 | Ap – calculate of amount A on the basis of an agreed level of profitability. | Pillar 1 | 14 | 25 | RBAcm |
| 83 | Ap – simplified approach, agree on a different % depending on the sector. | Pillar 1 | 14 | 30 | RBAas |
| 84 | Ap – benefits excluded from the mass of profits to be reallocated to the markets. | Pillar 1 | 14 | 28 | RBAbe |
| 85 | Ap – principles of simplification for calculating profit. | Pillar 1 | 14 | 42 | RBAps |
| 86 | Ap – fraction of benefits attributed to the jurisdiction of the market. | Pillar 1 | 15 | 6 | RBAfb |
| 87 | Ap – fraction benefits non-standard attribute to the market and % international. | Pillar 1 | 15 | 14 | RBAbi |
| 88 | Ap – agreement on method of calculating ‘w‘. | Pillar 1 | 15 | 23 | RBAmw |
| 89 | Ap – distributed profits (ie w %) between the juridictions the eligible market. | Pillar 1 | 15 | 28 | RBAwj |
| 90 | Ap – evaluate an approximately adequate profit. |
Pillar 1 | 15 | 29 | RBAea |
| 91 | Ap – simplified approach based on a fixed % application formula. |
Pillar 1 | 15 | 37 | RBAff |
| 92 | Ap – Amount B – Generalities. | Pillar 1 | 15 | 39 | RBAbg |
| 93 | Ap – Mt B – fixed return to be evaluated at the level of profitability. |
Pillar 1 | 15 | 41 | RBMbe |
| 94 | Ap – Mt B – Fixed performance & reduce double taxation risks. | Pillar 1 | 15 | 46 | RBAbr |
| 95 | Ap – Mt B – define the activities that give rise to a fixed yield. | Pillar 1 | 16 | 3 | RBAbd |
| 96 | Ap – Amount C – Generalities. | Pillar 1 | 16 | 7 | RBAcg |
| 97 | Ap – Mt C – objections on sales and distribution activities. | Pillar 1 | 16 | 10 | RBMco |
| 98 | Ap – Mt C – dispute settlement measures. |
Pillar 1 | 16 | 15 | RBMcr |
| 99 | Ap – Mt C – double taxation RBPpi, RBNdi, RBQdd, RBQme, RBQrd, RBAbr. | Pillar 1 | 16 | 16 | RBMcd |
| 100 | Ap – Mt C – mandatory and effective procedures for settling disputes. |
Pillar 1 | 16 | 20 | RBMcp |
| 101 | Ap – Mt C – the benefit already assigned for the amount A cannot be reassigned. | Pillar 1 | 16 | 23 | RBMcb |
| 102 | Ap – Mt C – benefit for amount A which gives entitlement to amount C. |
Pillar 1 | 16 | 25 | RBMct |
Mt A = Amount A, Mt B = Amount B, Mt C = Amount C, Qe = Questions, Ap = Apendice, MNE = Multi National Enterprise