A DETAILED ANALYSIS OF THE “EQUALISATION LEVY”

Abstract

Confounded by the swift pace at which conventional business patterns and practices have been overshadowed and engulfed by the spectre of digital economies, one wonders if the alacritous permeation of the digitalization process would threaten to render the existing systems redundant. The consequential beneficiaries of this metamorphosis are Multi-National Corporations [“MNC‟s”] who more often than not make a contrived attempt, on the pretext of tax planning, to capitalize on the same and milk as much revenue as possible without incurring tax liabilities. Thus, the exaction in the form of an “Equalisation Levy” is a result of attaining a global consensus on the underlying causes of various tax challenges faced by countries that are part of OECD and G20. The subject matter of discussion in this paper is the recently introduced equalisation levy which has seen sizeable success within months of its inception.