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Consider the following statements regarding the Global Tax Agreement framed by the OECD:
1. The agreement tries to give more taxing rights on multinational companies to the governments of their home countries.
2. Under this agreement, countries agreed to implement a minimum tax rate of 15% on large multinational companies.
3. Implementation of minimum tax rate would lead to decline in global tax revenues.
Which of the statements given above is/are correct?
1. The agreement tries to give more taxing rights on multinational companies to the governments of their home countries.
2. Under this agreement, countries agreed to implement a minimum tax rate of 15% on large multinational companies.
3. Implementation of minimum tax rate would lead to decline in global tax revenues.
Which of the statements given above is/are correct?
- a)1 and 2 only
- b)2 only
- c)1 and 3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Consider the following statements regardingthe Global Tax Agreement fr...
- EU members have agreed to implement a minimum tax rate of 15% on big businesses in accordance with the global tax agreement framed by the Organisation for Economic Cooperation and Development (OECD) last year. x Pillar 1 of the OECD’s tax plan tries to address the question of taxing rights. Large multinational companies have traditionally paid taxes in their home countries even though they did most of their business in foreign countries. The OECD plan tries to give more taxing rights to the governments of countries where large businesses conduct a substantial amount of their business. As a result, large U.S. tech companies may have to pay more taxes to the governments of developing countries. Hence statement 1 is not correct.
- Under Pillar 2 of the global tax agreement framed by the Organisation for Economic Cooperation and Development (OECD), countries agreed to implement a minimum tax rate of 15% on big businesses. Under the OECD’s plan, governments will be equipped to impose additional taxes in case companies are found to be paying taxes that are considered too low. This is to ensure that big businesses with global operations do not benefit by domiciling themselves in tax havens in order to save on taxes. Hence statement 2 is correct.
- Corporate tax rates across the world have been dropping over the last few decades as a result of competition between governments to spur economic growth through greater private investments. Global corporate tax rates have fallen from over 40% in the 1980s to under 25% in 2020. The OECD’s tax plan tries to put an end to this “race to the bottom” which has made it harder for governments to shore up the revenues required to fund their rising spending budgets. It is estimated that the minimum tax rate would boost global tax revenues by $150 billion annually. Hence statement 3 is not correct.
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Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Solutions for Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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ample number of questions to practice Consider the following statements regardingthe Global Tax Agreement framed by theOECD:1. The agreement tries to give more taxingrights on multinational companies to thegovernments of their home countries.2. Under this agreement, countries agreed toimplement a minimum tax rate of 15% onlarge multinational companies.3. Implementation of minimum tax ratewould lead to decline in global taxrevenues.Which of the statements given above is/arecorrect?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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