US Treasury Secretary&nbsp;Janet&nbsp;Yellen&nbsp;said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate and pledged that restoring US&nbsp;multilateral leadership would strengthen the global economy and advance US&nbsp;interests.

In a speech ahead of her first International Monetary Fund and World Bank Spring Meetings as Treasury chief,&nbsp;Yellen&nbsp;signaled stronger US&nbsp;engagement on issues from climate change to human rights to tax base erosion.

A global minimum tax proposed by the Biden administration could help to end a "thirty-year race to the bottom on corporate tax rates,"&nbsp;Yellen&nbsp;told an online event hosted by the Chicago Council on Global Affairs.

The proposal is a key pillar of President Joe Biden's $2 trillion infrastructure spending plan, which calls for an increase in the US&nbsp;corporate tax rate to 28 per cent&nbsp;while eliminating some deductions associated with overseas profits.

Without a global minimum, the United States would again have higher rates than a number of other major economies, tax experts say, while the US&nbsp;proposal could help jump-start negotiations for a tax deal among major economies.

World Bank President David Malpass said finance leaders from the Group of 20 major economies on Wednesday would discuss global tax issues, including for digital services, adding that international attitudes were shifting away from continual tax reductions.

"Taxes matter to development, and it's important that the world get it right," Malpass told CNBC television.

Separately, a group of Democratic senators unveiled a legislative proposal to roll back parts of former President Donald Trump's 2017 US tax cuts.

NEW ATTITUDE

Yellen&nbsp;also said she would use the IMF and World Bank meetings this week to advance discussions on climate change, improve vaccine access for poor countries and push countries to do more to support a strong global recovery from the coronavirus pandemic.

"We will fare better if we work together and support each other,"&nbsp;Yellen&nbsp;said.

Her more cooperative approach marks a sharp contrast to the 'America First' approach of her Trump administration predecessor, Steven Mnuchin. She has backed a $650 billion increase in IMF monetary reserves that Mnuchin opposed last year, and said she will work with international institutions and partners on carbon emission reduction targets.

Mnuchin had routinely opposed any climate change references in G20 and other communiques issued from large multilateral gatherings.

Yellen&nbsp;also has dropped&nbsp;a key Mnuchin demand from international tax negotiations - a provision that would allow large US&nbsp;technology companies to opt out of any new rules on taxation of digital services.

PRESSURE ON TAX HAVENS

The new Treasury chief said it was important to "end the pressures of tax competition" and make sure governments "have stable tax systems that raise sufficient revenues in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government."

Separately, a US&nbsp;Treasury official told reporters that it was important to have the world's major economies on board with a global minimum tax to make it effective, but did not say how many countries were needed for this.

The official said the United States would use its own tax legislation to prevent companies from shifting profits or residency to tax haven countries and would encourage other major economies to do the same.

The Biden plan proposes a 21 per cent&nbsp;minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax. The administration says the plan will discourage the shifting of jobs and profits overseas.

Yellen&nbsp;said in her remarks that while advanced economies had successfully supported their economies through the COVID-19 pandemic, it was too early to declare victory, and more support was needed for low income countries to gain access to vaccines.

US Treasury Secretary Janet Yellen said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate and pledged that restoring US multilateral leadership would strengthen the global economy and advance US interests.

US Treasury Secretary Janet Yellen said on Monday that she is working with G20 countries to agree on a global corporate minimum tax rate and pledged that restoring US multilateral leadership would strengthen the global economy and advance US interests. In a speech ahead of her first International Monetary Fund and World Bank Spring Meetings as Treasury chief, Yellen signaled stronger US engagement on issues from climate change to human rights to tax base erosion. A global minimum tax proposed by the Biden administration could help to end a "thirty-year race to the bottom on corporate tax rates," Yellen told an online event hosted by the Chicago Council on Global Affairs. The proposal is a key pillar of President Joe Biden's $2 trillion infrastructure spending plan, which calls for an increase in the US corporate tax rate to 28 per cent while eliminating some deductions associated with overseas profits. Without a global minimum, the United States would again have higher rates than a number of other major economies, tax experts say, while the US proposal could help jump-start negotiations for a tax deal among major economies. World Bank President David Malpass said finance leaders from the Group of 20 major economies on Wednesday would discuss global tax issues, including for digital services, adding that international attitudes were shifting away from continual tax reductions. "Taxes matter to development, and it's important that the world get it right," Malpass told CNBC television. Separately, a group of Democratic senators unveiled a legislative proposal to roll back parts of former President Donald Trump's 2017 US tax cuts. NEW ATTITUDE Yellen also said she would use the IMF and World Bank meetings this week to advance discussions on climate change, improve vaccine access for poor countries and push countries to do more to support a strong global recovery from the coronavirus pandemic. "We will fare better if we work together and support each other," Yellen said. Her more cooperative approach marks a sharp contrast to the 'America First' approach of her Trump administration predecessor, Steven Mnuchin. She has backed a $650 billion increase in IMF monetary reserves that Mnuchin opposed last year, and said she will work with international institutions and partners on carbon emission reduction targets. Mnuchin had routinely opposed any climate change references in G20 and other communiques issued from large multilateral gatherings. Yellen also has dropped a key Mnuchin demand from international tax negotiations - a provision that would allow large US technology companies to opt out of any new rules on taxation of digital services. PRESSURE ON TAX HAVENS The new Treasury chief said it was important to "end the pressures of tax competition" and make sure governments "have stable tax systems that raise sufficient revenues in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government." Separately, a US Treasury official told reporters that it was important to have the world's major economies on board with a global minimum tax to make it effective, but did not say how many countries were needed for this. The official said the United States would use its own tax legislation to prevent companies from shifting profits or residency to tax haven countries and would encourage other major economies to do the same. The Biden plan proposes a 21 per cent minimum corporate tax rate, coupled with eliminating exemptions on income from countries that do not enact a minimum tax. The administration says the plan will discourage the shifting of jobs and profits overseas. Yellen said in her remarks that while advanced economies had successfully supported their economies through the COVID-19 pandemic, it was too early to declare victory, and more support was needed for low income countries to gain access to vaccines.

Yellen pledges US international cooperation, calls for global minimum tax

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. 
 
The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years. Last year, the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units, the rates were reduced to 15 per cent. 
 
Dividend distribution tax was also abolished.The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws.Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department.

Also read:&nbsp;<a href="/india-news/all-those-who-came-in-contact-with-infected-person-should-be-traced-and-tested-within-72-hours-pm-modi-319756" hreflang="en">All those who came in contact with infected person should be traced and tested within 72 hours: PM Modi</a> 
 
This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. 
 
Compliance norms for startups have also been simplified.With a view to provide for resolution of pending tax disputes the IT Department also brought out the Direct Tax "Vivad se Vishwas Act, 2020" under which declarations for settling disputes are being filed currently. 
 
To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised.Several measures have been taken to promote digital transactions and electronic modes of payment. 
 
The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.

Also read:&nbsp;<a href="/india-news/covid-19-situation-in-india-pm-modi-holds-meet-with-chief-ministers-of-10-states-319681" hreflang="en">COVID-19 situation in India: PM Modi holds meet with chief ministers of 10 states</a> 
 
The upcoming launch of the platform for " Transparent Taxation - Honoring the Honest " by the Prime Minister will further carry forward the journey of direct tax reforms. 
 
The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants` associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. 
 
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur will also present on the occasion.&nbsp;

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years.

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years. Last year, the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units, the rates were reduced to 15 per cent. Dividend distribution tax was also abolished.The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws.Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department. Also read: All those who came in contact with infected person should be traced and tested within 72 hours: PM Modi This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.With a view to provide for resolution of pending tax disputes the IT Department also brought out the Direct Tax "Vivad se Vishwas Act, 2020" under which declarations for settling disputes are being filed currently. To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised.Several measures have been taken to promote digital transactions and electronic modes of payment. The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers. Also read: COVID-19 situation in India: PM Modi holds meet with chief ministers of 10 states The upcoming launch of the platform for " Transparent Taxation - Honoring the Honest " by the Prime Minister will further carry forward the journey of direct tax reforms. The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants` associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. Union Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur will also present on the occasion.

PM Modi to launch platform for 'Transparent Taxation' on August 13

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