28 developing nations back India on OECD tax proposal

NEW DELHI : A group of 28 developing nations has backed India’s opposition to a set of new global rules for taxing tech giants being brokered by the Organisation for Economic Cooperation and Development (OECD).

India and its supporters believe the proposal gives undue taxation rights to the US at their expense.

The proposed rules are part of a bid to prevent corporations artificially showing profits in low-tax countries instead of the country where their economic activity takes place. As talks enter the final stage, a wide gulf has opened up over taxation rights on new age companies like Netflix, Google and Facebook between their home countries and developing countries like India as well as European Union nations where these companies have a large customer base.