View: A case for a minimum alternative tax on revenues, not on profits - ET Retail

View: A case for a minimum alternative tax on revenues, not on profits - ET Retail

  • She has done exactly that in an op-ed in the Financial Times (‘An overhaul of the international tax system can wait no longer’, goo.gl/XanF8z).
  • The public perception that large multinational companies pay little tax has led to political demands for urgent action… with good reason.
  • IMF analysis shows that non-OECD countries collectively lose about $200 bn in revenue a year, or about 1.3 per cent of gross domestic product , due to companies shifting profits to low-tax locations.
  • That makes it economic for private equity to provide billions for ventures — mostly digital/electronic ventures — that lose money for years while building market share by cutting prices below cost.
  • Indian businesses call this ‘capital dumping’, using subsidised capital to gain market share at the expense of Indian rivals.


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