Q.3) What are the factors that led to the demand of global minimum corporate tax? What will be its implications for India? (10 Marks)

“Mentor’s Comments”

  • https://www.thehindu.com/opinion/op-ed/a-far-reaching-tax-measure/article34711365.ece
  • In the intro, mention the factors such as unfair tax competition, tendencies of multi-national companies towards profits shifting for tax evasion etc. In the next part mention how India could benefit from such a tax as India loses 10 billion due to offshore structures.
  • Conclude by mentioning the need to avoid tax related trade war and unilateral levies in the global economy already battered by pandemic.
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