TNPSC Current Affairs May 17, 2017
1.Union Cabinet approves signing of the Multilateral Convention to Prevent Base Erosion and Profit Shifting
Union Cabinet has given its nod signing of the Multilateral Convention to implement tax treaty to Prevent Base Erosion and Profit Shifting (BEPS) by India.
The Multilateral Convention will check the loopholes in existing laws under which organisation shows artificial shifting profits to low or no-tax countries where there is little or no economic activity.
About Multilateral convention and its Challenges:
- The Multilateral convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting through tax planning strategies.
- BEPS project has identified 15 actions to address BEPS in a comprehensive manner.
- Implementing BEPS Package requires changes to more than 3000 bilateral tax treaties , which is burden and time consuming.
- The Multilateral convention considered as a Multilateral instrument to modify all bilateral tax treaties to implement BEPS .
- The Convention implements two minimum standards relating to prevention of treaty abuse and dispute resolution through Mutual Agreement Procedure.
- Signing of the Multilateral Convention will enable the application of BEPS outcomes through modification of existing tax treaties in a swift manner
- And it will enable curbing of revenue loss through treaty abuse and base erosion and profit shifting strategies by ensuring that profits are taxed where economic activities generating the profits are carried out and where value is created.
2.Union Cabinet approves MoU with Australia on Cooperation in Combating International Terrorism and Transnational Organized Crime
The Union Cabinet has given its Ex-pacto approval to the MoU (Memorandum of Understanding between India and Australia on cooperation in Combating International Terrorism and Transnational Organized Crime.
The Union Cabinet was chaired by Prime Minster Shri Narendra Modi.
- It will strengthen the relationship between both Nation for building peace and stability in the region through exchange of information, expertise, experience and capacity building.
- It is an effective framework to deal with all issues requiring interaction and cooperation in the areas identified.
- The Cooperation will facilitate the institutional interactions between India and Australia.
- Once the MoU comes into force, which will help in curbing combating International Terrorism and Transnational Organized Crime.
3.Cabinet approves Agreement with Tajikistan on Cooperation and Mutual Assistance in Customs Matters
The Union Cabinet has given its nod for signing and ratifying, an agreement between India and Tajikistan on Cooperation and Mutual Assistance in Customs Matters.
The Agreement will help in getting relevant information for the prevention and investigation of Customs offences, and also to facilitate trade and ensure efficient clearance of goods traded between both India and Tajikishtan.
- It will provide a legal framework for sharing information between the customs authorities of both India and Tajikistan.
- It helps in proper application of customs laws, prevention and investigation of customs offences and helps on proper trade.
- It also takes care of Indian Customs' concerns and requirements,in the area of exchange of information on the correctness of the Customs value declared, origin of goods and the tariff classification of the goods traded between both India and Tajikistan.
4.Union Cabinet approves Amendment of the Ancient Monuments and Archaeological Sites and Remains Act, 1958.
Union Cabinet has given its nod for amending the Ancient monuments and Archaeological sites and Remains (Amendment) Bill 2017.
Below are the amendments approved:
- Insertion of a new definition of “public works” in section 2 of the Act.
- Amendment to section 20A of the Act so as to allow any Department or Office of the Central Government to carry out public works in the prohibited area after obtaining permission from the Central Government.
- Insertion of a new clause (ea) to section 20-I of the principal Act
- The Act prohibits providing any permission for new construction within the prohibited area of a centrally protected monument or site.
- Prohibition will impact various public works and development project of Government within prohibited area.
- The amendment will now help for certain constructions limited strictly to public works and projects essential to public within the prohibited area and benefit the public.