G 20 Current Affairs - 2020
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In order to achieve minimum government and maximum governance, the Budget 2020-21 has allocated funds for the following
Tax Payer Charter introduced
The Budget allocated funds to institutionalize a Tax Payer Charter. This is to ensure fairness and avoid harassments in the quest of collecting taxes from the citizens. Only three countries in the world so far have enshrined the rights of taxpayers namely Canada, Australia and US Through tax payer charter, India joins the list.
National Recruitment Agency to be established
The Companies Act, 2013 is to be amended. Major reforms in the recruitment processes of non-Gazetted posts in Government administration and public sector banks are to be introduced. As this process involves immense effort, cost and time, a National Recruitment Agency is to be established. The Agency will conduct multiple examinations and also computer based Online Common Eligibility Test. A Test Centre at every Aspirational District is to be set up.
Also, a robust mechanism will be introduced to absorb best talents and professionals for speedy disposal of commercial and other disputes.
National Policy on Official Statistics to be introduced
The GoI has witnessed the need for the Indian Statistical System to meet the challenges of the increasing complexity of the economy. In order to achieve this, National Policy on Official Statistics will be introduced. The policy will lay down a road map towards data collection, timely dissemination of information and integrated information portal.
G 20 presidency of India – FUND ALLOCATION
India is to preside over the G 20 meeting in the year 2022 (the year India is celebrating its 75th anniversary). To kick start the preparations, by 2021, the Budget has allocated 100 crores.
North East and J&K-FUND ALLOCATION
Government has been ensuring smooth access to financial assistance to the North East Region. Also, the GoI has been supporting the all-round development of newly formed Union Territories Ladakh and J&K.
In order to strengthen these measures, The Budget 2020-21 has allocated 30,757 crores. For the Union Territory of Ladakh, the Budget allocated 5,958 crores.
Tags: funds • G 20 • Governance • Jammu and Kashmir • Ladakh
Union Cabinet has approved the signing of Double Taxation Avoidance Agreement (DTAA) and Protocol between Republic of India and Republic of Chile. This will help in elimination of double taxation as well as prevention of fiscal evasion and avoidance with respect to taxes on income.
Major impact of DTAA Agreement and Protocol
It will facilitate elimination of double taxation between two nations. Moreover, a clear allocation of taxing rights between Contracting States by Agreement will provide tax certainty to investors and businesses of both countries. This will also augment the flow of investment through fixing of fees for technical services, royalties and the tax rates in source State on interest.
The Agreement and Protocol implements minimum standards and other recommendations of G-20 OECD Base Erosion Profit Shifting (BEPS) Project (or BEPS Project). The Agreement includes provisions such as a Principal Purpose Test, Preamble Text, a General Anti-Abuse provision along with a Simplified Limitation of Benefits Clause (SLBC) as per BEPS Project. This will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules.
The Implementation Strategy and Targets includes completing necessary formalities for bringing the Agreement and Protocol into force after the Cabinet approval. Implementation would be watched and reported by Union Ministry of Finance.
Tags: Base Erosion Profit Shifting • BEPS project • Cabinet Decision • Double Taxation Avoidance Agreements • DTAA