BENGALURU: The good news is up for the central government to pull together much higher taxes from the multinational companies. The G20 nations, recently hinted on overhauling the global taxation system. As an immediate response, a Paris based Organization for Economic Co-operation and Development (OECD),  has reformed the taxation system structure which can yield higher tax than the current adopted module, as reported by the TOI.

Base Erosion and Profit Sharing (BEPS) is the new module that is formed by the OECD, that advises the multinational companies to restructure their functions. Currently multinational giants are subject of the low levy. But if the new module is enacted, the global revenue is expected to hit the new mark of $240 billion. Furthermore, the latest revamp is said to benefit on the rise nations. Since the anticipated revenue is more than expected mark of India and is calculated to be 10 percent of the global Corporate Income Tax (CIT) revenues.

On the footprints of the BEPS release, the Finance Ministers of all the G20 countries have decided to meet on 8th this month. Since the BEPS is favoring the developing countries, the financial experts in the country have suggested the Indian Government to receive the module. Executive Director at PricewaterhouseCoopers, Rahul Garg said. "The whole approach of BEPS is in favor of developing countries. Therefore, Indian authorities should welcome them and corporations should mature to align themselves to the new regime."

However, India is likely to accept the remodeled structure, the country is also predictable to sign the tax treaties, with the multinational companies, to tweak the laws in the structure.     

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