New Delhi: A change in the international tax structure is the call of the hour. The process of globalizing the tax aspect of our businesses is inevitable, said JB Mohapatra, Chairperson, Central Board of Direct Taxes (CBDT), Ministry of Finance, here addressing the virtual ‘International Tax Conference 2021’ organized by FICCI on Friday.

Mohapatra said: “India’s international tax structure and the processes have been in line with the bricks and mortar model of businesses. Given the rapidly evolving ways of doing business, these would need to be altered to keep pace with the times that lie ahead.”

He pointed out that India’s revenue goals stand to gain from this exercise. Business opportunities are likely to increase going ahead, and he foresees an exciting time for personnel in international taxation domain.

He further stated that dispute resolution remains a key challenge as tax officials will be working multilaterally. “The future would depend on how strongly, comprehensively and clearly the guidelines and SOPs are drawn. We should be in a good stead as long as that is followed,” added Mohapatra.

Dinesh Kanabar, CEO, Dhruva Advisors LLP, said: “A number of changes have been witnessed in the field on international taxation over the past few years and the speed at which these changes are being implemented is unprecedented. The OECD has adhered to timelines, framing of rules and guidelines and has been relentless on this front – which is laudable.”

Kanabar stated that the rule of having physical presence in a country for taxation purpose was sacrosanct and was not contested for long. However, with India raising its voice to amend such rules given the changing times and greater digitization, the world has finally accepted that the demand of emerging markets including India is not uncalled for.

“The 15 per cent rate of tax for corporate has now become the norm in most of the countries and can be a game changer. Even though the new processes and regulations will take time to settle down, we are staring at a new world. India needs to take a fair share of credit for having shaped the world view in this regard. With the implementation of new taxation laws, tax havens will come to an end in a few years from now,” he added. /BI/