{"disclaimer":"Automatically generated transcript — may contain errors. Not an official United Nations record.","video":{"id":"k1f/k1fre2a32w","kaltura_id":"1_fre2a32w","title":"(12th meeting) Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation - Fourth Session","clean_title":"(12th meeting) Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation - Fourth Session","url":"https://webtv.un.org/en/asset/k1f/k1fre2a32w","date":"2026-02-10T00:00:00.000Z","scheduled_time":"2026-02-10T20:00:00.000Z","status":"finished","duration":"02:16:46","category":"Economic and Social Council","body":"Economic and Social Council","event_code":null,"event_type":null,"session_number":null,"pv_symbol":null,"pv_part":null,"slug":"asset/k1f/k1fre2a32w"},"metadata":{"summary":"The Fourth Session will take place at the United Nations Headquarters in New York from 2 to 13 February 2026, with no meetings on 4 February.","description":"Protocol 1 on Taxation of income derived from the provision of cross-border services in an increasingly digitalized and globalized economy Discussion of the options paper (Continued) The United Nations General Assembly has established an Intergovernmental Negotiating Committee (INC) to draft a United Nations Framework Convention on International Tax Cooperation and two early protocols. The United Nations Framework Convention on International Tax Cooperation is a proposed international legal instrument aimed at improving global tax cooperation. This Member State-led process will run from 2025 to 2027, with the aim of developing a framework convention that leads to fully inclusive and more effective international tax cooperation.","categories":["Meetings & Events","Economic and Social Council","Subsidiary Bodies","International Tax Cooperation"],"geographic_subject":[],"subject_topical":["TAXATION","COOPERATION","WORLD ECONOMY"],"corporate_name":["COMMITTEE OF EXPERTS ON INTERNATIONAL COOPERATION IN TAX MATTERS"],"speaker_affiliation":[],"related_documents":[]},"transcript":{"transcript_id":"394ff726-5fd1-4eaa-b506-156c45420d4c","language":"en","data":[{"statement_number":1,"paragraphs":[{"sentences":[{"text":"Good afternoon, everyone.","start":2.96,"end":3.84,"topics":[],"words":[{"text":"Good","start":2.96,"end":3.12},{"text":"afternoon,","start":3.12,"end":3.52},{"text":"everyone.","start":3.52,"end":3.84}]},{"text":"Welcome 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that's where that sentence comes from.","start":328.95,"end":332.07,"topics":[],"words":[{"text":"And","start":328.95,"end":329.27},{"text":"that's","start":329.27,"end":329.63},{"text":"where","start":329.63,"end":329.91},{"text":"that","start":330.23,"end":330.63},{"text":"sentence","start":330.87,"end":331.39},{"text":"comes","start":331.39,"end":331.71},{"text":"from.","start":331.71,"end":332.07}]},{"text":"But we can discuss that privately.","start":333.91,"end":336.95,"topics":[],"words":[{"text":"But","start":333.91,"end":334.23},{"text":"we","start":334.23,"end":334.47},{"text":"can","start":334.47,"end":334.669},{"text":"discuss","start":334.669,"end":334.95},{"text":"that","start":334.95,"end":335.35},{"text":"privately.","start":336.23,"end":336.95}]},{"text":"But I think that's why I still think it's a correct 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nevertheless we think it's good to kick off the discussion here about the method of taxation.","start":370.44,"end":378.92,"topics":[],"words":[{"text":"But","start":370.44,"end":370.68},{"text":"nevertheless","start":371.4,"end":372.12},{"text":"we","start":372.12,"end":372.32},{"text":"think","start":372.32,"end":372.52},{"text":"it's","start":372.52,"end":373},{"text":"good","start":373.24,"end":373.56},{"text":"to","start":373.56,"end":373.76},{"text":"kick","start":373.76,"end":374.04},{"text":"off","start":374.04,"end":374.36},{"text":"the","start":374.68,"end":375},{"text":"discussion","start":375,"end":375.64},{"text":"here","start":375.96,"end":376.36},{"text":"about","start":377.08,"end":377.44},{"text":"the","start":377.44,"end":377.68},{"text":"method","start":377.68,"end":378},{"text":"of","start":378,"end":378.24},{"text":"taxation.","start":378.24,"end":378.92}]},{"text":"And we have the same sentiments as expressed by Canada before 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we thought it would be good to share some thoughts and experiences from that perspective.","start":494.45,"end":500.87,"topics":[],"words":[{"text":"So","start":494.45,"end":494.73},{"text":"we","start":494.73,"end":494.89},{"text":"thought","start":494.89,"end":495.13},{"text":"it","start":495.13,"end":495.37},{"text":"would","start":495.37,"end":495.53},{"text":"be","start":495.53,"end":495.69},{"text":"good","start":495.69,"end":495.93},{"text":"to","start":495.93,"end":496.29},{"text":"share","start":497.41,"end":497.81},{"text":"some","start":497.81,"end":498.13},{"text":"thoughts","start":498.13,"end":498.61},{"text":"and","start":498.79,"end":498.91},{"text":"experiences","start":498.91,"end":499.63},{"text":"from","start":499.63,"end":499.91},{"text":"that","start":499.91,"end":500.15},{"text":"perspective.","start":500.15,"end":500.87}]},{"text":"And they go in the same way, as Estonia just explained right 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you. Nora, Can I just ask a short question?","start":620.44,"end":625,"topics":[],"words":[{"text":"Thank","start":620.44,"end":620.76},{"text":"you.","start":620.76,"end":620.88},{"text":"Nora,","start":620.88,"end":621.48},{"text":"Can","start":621.64,"end":621.92},{"text":"I","start":621.92,"end":622.08},{"text":"just","start":622.08,"end":622.32},{"text":"ask","start":622.32,"end":622.68},{"text":"a","start":623.08,"end":623.48},{"text":"short","start":624.28,"end":624.64},{"text":"question?","start":624.64,"end":625}]},{"text":"You started off saying that gross taxation and then so that doesn't work with net taxation.","start":625.16,"end":631.54,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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taxation.","start":653.38,"end":655.44,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."}],"words":[{"text":"It","start":653.38,"end":653.66},{"text":"goes","start":653.66,"end":653.9},{"text":"away","start":653.9,"end":654.1},{"text":"with","start":654.1,"end":654.3},{"text":"the","start":654.3,"end":654.42},{"text":"net","start":654.42,"end":654.58},{"text":"pay","start":654.58,"end":654.73},{"text":"taxation.","start":655.04,"end":655.44}]},{"text":"Yes.","start":655.44,"end":655.84,"topics":[],"words":[{"text":"Yes.","start":655.44,"end":655.84}]},{"text":"Okay, so then if the option is there for a net taxation, we are quite.","start":656.24,"end":660.76,"topics":[{"key":"optional-net-election","label":"Optional Net Election","description":"Considering a regime 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Madam Kholid. Although I think that the nexus discussion is important to define the method, I also think that it's important to start to discuss the methods and to see the risk and advantage for utilization of one another.","start":1140.75,"end":1161.63,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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And I think just to highlight, I think one of the points that you mentioned.","start":1250.18,"end":1255.54,"topics":[],"words":[{"text":"Thank","start":1250.18,"end":1250.54},{"text":"you","start":1250.54,"end":1250.7},{"text":"Brazil.","start":1250.7,"end":1251.22},{"text":"And","start":1251.22,"end":1251.54},{"text":"I","start":1251.54,"end":1251.7},{"text":"think","start":1251.7,"end":1251.94},{"text":"just","start":1252.02,"end":1252.34},{"text":"to","start":1252.34,"end":1252.58},{"text":"highlight,","start":1252.58,"end":1253.14},{"text":"I","start":1253.54,"end":1253.82},{"text":"think","start":1253.82,"end":1254.06},{"text":"one","start":1254.06,"end":1254.3},{"text":"of","start":1254.3,"end":1254.42},{"text":"the","start":1254.42,"end":1254.54},{"text":"points","start":1254.54,"end":1254.78},{"text":"that","start":1254.78,"end":1255.02},{"text":"you","start":1255.02,"end":1255.18},{"text":"mentioned.","start":1255.18,"end":1255.54}]}]},{"sentences":[{"text":"Yeah, it's a high 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Singapore taxes service income of non residents as well.","start":1283.55,"end":1301.48,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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view is that the tax should be imposed on profits and on taxpayers with the true ability to pay on gross basis of taxation.","start":1301.96,"end":1311.8,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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are concerned that there is the risk of over taxation as mentioned by our colleagues also from Brazil, Brazil and many others as well.","start":1311.96,"end":1321.77,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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we are concerned that gross basis taxation may also distort business decisions because firms may restructure their operations or pricing policies so as to manage their gross basis of tax exposure rather than to structure their business operations based on commercial real estate reasons.","start":1322.17,"end":1346.18,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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the other hand, the next net basis of taxation which is levied on income after deducting the expenses, it better reflects taxpayers actual economic gain or capacity to pay the tax.","start":1346.82,"end":1360.9,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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also note that for low margin and loss making businesses, if we impose a gross basis of taxation, there is indeed a high risk of over taxation and therefore it is not a business friendly tax.","start":1362.66,"end":1378.65,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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we are concerned that this may inadvertently impede cross border trade or investments as well.","start":1378.81,"end":1386.33,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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flexibility.","start":1397.61,"end":1401.93,"topics":[],"words":[{"text":"We","start":1397.61,"end":1397.77},{"text":"are","start":1397.77,"end":1398.01},{"text":"wondering","start":1398.01,"end":1398.61},{"text":"whether","start":1398.61,"end":1398.93},{"text":"the","start":1398.93,"end":1399.21},{"text":"protocol","start":1399.21,"end":1399.85},{"text":"can","start":1399.85,"end":1400.13},{"text":"actually","start":1400.13,"end":1400.49},{"text":"allow","start":1400.57,"end":1400.97},{"text":"some","start":1400.97,"end":1401.29},{"text":"flexibility.","start":1401.29,"end":1401.93}]},{"text":"There is no need for us to be prescriptive to only prescribe one method of taxation.","start":1402.57,"end":1408.41,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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bilaterally.","start":1415.93,"end":1420.89,"topics":[],"words":[{"text":"And","start":1415.93,"end":1416.33},{"text":"we","start":1416.49,"end":1416.81},{"text":"can","start":1416.81,"end":1417.09},{"text":"leave","start":1417.09,"end":1417.41},{"text":"it","start":1417.41,"end":1417.69},{"text":"to","start":1417.69,"end":1418.09},{"text":"the","start":1418.09,"end":1418.37},{"text":"Member","start":1418.37,"end":1418.65},{"text":"States","start":1418.65,"end":1419.05},{"text":"to","start":1419.21,"end":1419.53},{"text":"agree","start":1419.53,"end":1419.85},{"text":"bilaterally.","start":1419.93,"end":1420.89}]},{"text":"On which basis works best best for them.","start":1421.05,"end":1423.55,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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Yes, I wanted to just clarify, but I think I understood at the end that the net taxation, you are happy if it's an option, but you're okay with the two parallel gross taxation with an option for the taxpayer to pay on net if that is so elected.","start":1522.86,"end":1542.82,"topics":[{"key":"optional-net-election","label":"Optional Net Election","description":"Considering a regime where gross withholding is the default but taxpayers may elect net basis taxation, including design, self‑selection incentives, and implications for compliance and potential under/over‑taxation."},{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."}],"words":[{"text":"Singapore.","start":1522.86,"end":1523.42},{"text":"Yes,","start":1523.42,"end":1523.74},{"text":"I","start":1523.74,"end":1523.98},{"text":"wanted","start":1523.98,"end":1524.3},{"text":"to","start":1524.3,"end":1524.5},{"text":"just","start":1524.5,"end":1524.7},{"text":"clarify,","start":1524.7,"end":1525.14},{"text":"but","start":1525.14,"end":1525.34},{"text":"I","start":1525.34,"end":1525.5},{"text":"think","start":1525.5,"end":1525.7},{"text":"I","start":1525.7,"end":1525.9},{"text":"understood","start":1525.9,"end":1526.27},{"text":"at","start":1527.14,"end":1527.26},{"text":"the","start":1527.26,"end":1527.42},{"text":"end","start":1527.42,"end":1527.7},{"text":"that","start":1528.02,"end":1528.38},{"text":"the","start":1528.38,"end":1528.74},{"text":"net","start":1528.82,"end":1529.18},{"text":"taxation,","start":1529.18,"end":1529.86},{"text":"you","start":1529.86,"end":1530.14},{"text":"are","start":1530.14,"end":1530.3},{"text":"happy","start":1530.3,"end":1530.62},{"text":"if","start":1530.62,"end":1530.78},{"text":"it's","start":1530.78,"end":1531.02},{"text":"an","start":1531.02,"end":1531.18},{"text":"option,","start":1531.18,"end":1531.7},{"text":"but","start":1532.42,"end":1532.82},{"text":"you're","start":1533.7,"end":1534.06},{"text":"okay","start":1534.06,"end":1534.46},{"text":"with","start":1534.46,"end":1534.62},{"text":"the","start":1534.62,"end":1534.82},{"text":"two","start":1534.82,"end":1535.14},{"text":"parallel","start":1535.62,"end":1536.42},{"text":"gross","start":1536.5,"end":1536.94},{"text":"taxation","start":1536.94,"end":1537.54},{"text":"with","start":1537.62,"end":1537.94},{"text":"an","start":1537.94,"end":1538.18},{"text":"option","start":1538.18,"end":1538.58},{"text":"for","start":1538.58,"end":1538.78},{"text":"the","start":1538.78,"end":1539.06},{"text":"taxpayer","start":1539.06,"end":1539.9},{"text":"to","start":1539.9,"end":1540.02},{"text":"pay","start":1540.02,"end":1540.18},{"text":"on","start":1540.18,"end":1540.38},{"text":"net","start":1540.38,"end":1540.66},{"text":"if","start":1540.66,"end":1540.98},{"text":"that","start":1540.98,"end":1541.3},{"text":"is","start":1541.38,"end":1541.74},{"text":"so","start":1541.74,"end":1542.06},{"text":"elected.","start":1542.06,"end":1542.82}]},{"text":"That's the way I understood in the end.","start":1543.06,"end":1545.06,"topics":[],"words":[{"text":"That's","start":1543.06,"end":1543.46},{"text":"the","start":1543.46,"end":1543.54},{"text":"way","start":1543.54,"end":1543.66},{"text":"I","start":1543.66,"end":1543.82},{"text":"understood","start":1543.82,"end":1544.26},{"text":"in","start":1544.42,"end":1544.66},{"text":"the","start":1544.66,"end":1544.78},{"text":"end.","start":1544.78,"end":1545.06}]}]}],"speaker":{"name":"Lisa","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Facilitator"}},{"statement_number":21,"paragraphs":[{"sentences":[{"text":"Yep. Thank you. Maybe Madam Chair, I just want to clarify that our preference is due for net basis of taxation because we think it basically minimizes the risk of over taxation and also is aligned to the economic gains that's earned by the service provider.","start":1550.58,"end":1569.2,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"double-taxation-elimination","label":"Double Taxation Elimination","description":"Ensuring shared taxing rights without over‑taxation through rate limits, foreign tax credits, and proxy measures that approximate net outcomes under gross withholding 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I'm sort of thinking those taxes today are not being given any credits.","start":1653.96,"end":1661,"topics":[{"key":"digital-services-taxes","label":"Digital Services Taxes","description":"Experience and analysis of DSTs as gross‑based levies on digital activities, including their creditability, scope, and lessons for designing cross‑border service taxation."},{"key":"double-taxation-elimination","label":"Double Taxation Elimination","description":"Ensuring shared taxing rights without over‑taxation through rate limits, foreign tax credits, and proxy measures that approximate net outcomes under gross withholding 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it's very, you know, it's sort of, it's a gross taxation, it's not giving the credit and it's been implemented in some countries.","start":1675.33,"end":1684.13,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"double-taxation-elimination","label":"Double Taxation Elimination","description":"Ensuring shared taxing rights without over‑taxation through rate limits, foreign tax credits, and proxy measures that approximate net outcomes under gross withholding 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if it could be shared, I think it would be interesting to see.","start":1684.29,"end":1687.57,"topics":[],"words":[{"text":"So","start":1684.29,"end":1684.57},{"text":"if","start":1684.57,"end":1684.73},{"text":"it","start":1684.73,"end":1684.89},{"text":"could","start":1684.89,"end":1685.09},{"text":"be","start":1685.09,"end":1685.29},{"text":"shared,","start":1685.29,"end":1685.65},{"text":"I","start":1685.65,"end":1685.81},{"text":"think","start":1685.81,"end":1685.97},{"text":"it","start":1685.97,"end":1686.17},{"text":"would","start":1686.17,"end":1686.33},{"text":"be","start":1686.33,"end":1686.49},{"text":"interesting","start":1686.49,"end":1687.05},{"text":"to","start":1687.05,"end":1687.29},{"text":"see.","start":1687.29,"end":1687.57}]}]},{"sentences":[{"text":"I'm not trying to be 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Thank you Madam Chair, and thank you for allowing me to take the MIC another time on this 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main comment would be regarding the mechanism of providing an election to be taxed on a net basis.","start":1901.74,"end":1910.86,"topics":[{"key":"optional-net-election","label":"Optional Net Election","description":"Considering a regime where gross withholding is the default but taxpayers may elect net basis taxation, including design, self‑selection incentives, and implications for compliance and potential 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also agree completely with the delegate for France on the need that our tax rules from this protocol are operational","start":2232.43,"end":2238.68,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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administrable for our tax authorities.","start":2239,"end":2241.08,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"and","start":2239,"end":2239.36},{"text":"administrable","start":2239.36,"end":2240.04},{"text":"for","start":2240.04,"end":2240.2},{"text":"our","start":2240.2,"end":2240.32},{"text":"tax","start":2240.32,"end":2240.52},{"text":"authorities.","start":2240.52,"end":2241.08}]},{"text":"And lastly, just to close, I think the delegate for Norway made some very interesting points in particular regarding the impact of gross based taxation on small open economies.","start":2241.88,"end":2251.08,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford 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Just to make sure you are not wanted to correct me and say that you want to oblige net taxation.","start":2256.6,"end":2264.5,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."}],"words":[{"text":"Thank","start":2256.6,"end":2256.92},{"text":"you,","start":2256.92,"end":2257.04},{"text":"Alan.","start":2257.04,"end":2257.48},{"text":"Just","start":2257.48,"end":2257.68},{"text":"to","start":2257.68,"end":2257.8},{"text":"make","start":2257.8,"end":2257.92},{"text":"sure","start":2257.92,"end":2258.2},{"text":"you","start":2258.36,"end":2258.68},{"text":"are","start":2258.68,"end":2258.92},{"text":"not","start":2258.92,"end":2259.24},{"text":"wanted","start":2260.52,"end":2260.96},{"text":"to","start":2260.96,"end":2261.12},{"text":"correct","start":2261.12,"end":2261.44},{"text":"me","start":2261.44,"end":2261.6},{"text":"and","start":2261.6,"end":2261.76},{"text":"say","start":2261.76,"end":2261.92},{"text":"that","start":2261.92,"end":2262.08},{"text":"you","start":2262.08,"end":2262.36},{"text":"want","start":2262.74,"end":2262.86},{"text":"to","start":2262.86,"end":2262.98},{"text":"oblige","start":2262.98,"end":2263.54},{"text":"net","start":2263.54,"end":2263.86},{"text":"taxation.","start":2263.86,"end":2264.5}]}]}],"speaker":{"name":"Lisa","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Facilitator"}},{"statement_number":31,"paragraphs":[{"sentences":[{"text":"Well, I wasn't commenting on your previous questions.","start":2264.74,"end":2267.42,"topics":[],"words":[{"text":"Well,","start":2264.74,"end":2265.14},{"text":"I","start":2265.14,"end":2265.42},{"text":"wasn't","start":2265.42,"end":2265.66},{"text":"commenting","start":2265.66,"end":2266.06},{"text":"on","start":2266.06,"end":2266.18},{"text":"your","start":2266.18,"end":2266.42},{"text":"previous","start":2266.58,"end":2266.94},{"text":"questions.","start":2266.94,"end":2267.42}]},{"text":"I thought your question was relation to DSTs and.","start":2267.42,"end":2270.02,"topics":[],"words":[{"text":"I","start":2267.42,"end":2267.54},{"text":"thought","start":2267.54,"end":2267.66},{"text":"your","start":2267.66,"end":2267.86},{"text":"question","start":2267.86,"end":2268.1},{"text":"was","start":2268.1,"end":2268.34},{"text":"relation","start":2268.34,"end":2268.66},{"text":"to","start":2268.66,"end":2268.98},{"text":"DSTs","start":2268.98,"end":2269.74},{"text":"and.","start":2269.74,"end":2270.02}]},{"text":"No, no, we don't have one.","start":2270.1,"end":2271.3,"topics":[],"words":[{"text":"No,","start":2270.1,"end":2270.42},{"text":"no,","start":2270.42,"end":2270.66},{"text":"we","start":2270.66,"end":2270.82},{"text":"don't","start":2270.82,"end":2270.98},{"text":"have","start":2270.98,"end":2271.1},{"text":"one.","start":2271.1,"end":2271.3}]}]}],"speaker":{"name":"Alan","affiliation":"IRL","affiliation_full":"Ireland","group":null,"function":"Representative"}},{"statement_number":32,"paragraphs":[{"sentences":[{"text":"So. No, no, it's a question of.","start":2271.3,"end":2273.86,"topics":[],"words":[{"text":"So.","start":2271.3,"end":2271.62},{"text":"No,","start":2271.86,"end":2272.14},{"text":"no,","start":2272.14,"end":2272.42},{"text":"it's","start":2272.82,"end":2273.14},{"text":"a","start":2273.14,"end":2273.26},{"text":"question","start":2273.26,"end":2273.5},{"text":"of.","start":2273.5,"end":2273.86}]},{"text":"Because what we're suggesting now that seems to be a sort of general agreement consensus here is that we'll have a gross bias taxation, but with an option for the taxpayer to pay on a net basis.","start":2274.34,"end":2288.04,"topics":[{"key":"optional-net-election","label":"Optional Net Election","description":"Considering a regime where gross withholding is the default but taxpayers may elect net basis taxation, including design, self‑selection incentives, and implications for compliance and potential under/over‑taxation."},{"key":"gross-vs-net-taxation","label":"Gross vs Net 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for most people that will be charging on cross, there will be non resident.","start":3250.09,"end":3256.1,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."},{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value 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example, as you had indicated, Khalid, in your earlier guidance, at present state source countries are able to tax physically rendered services on net basis by way of profit attribution where a PE is created, and obviously the PE itself in this case serves as nexus.","start":3476.38,"end":3498.07,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."},{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions 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we must emphasize that these methods may have proved to be effective because of the limited scope of services covered where certain services such as automated digital services are not covered.","start":3516.56,"end":3532.08,"topics":[{"key":"digital-services-taxes","label":"Digital Services Taxes","description":"Experience and analysis of DSTs as gross‑based levies on digital activities, including their creditability, scope, and lessons for designing cross‑border service 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Kholid, while individual jurisdictions may have specific preference for a suitable method, like the way, Zambia may have a strong preference for gross based taxation, we acknowledge that this protocol we are developing and discussing right now seeks to introduce new nexus rules, in our view, we consider this to be a rare opportunity for the global community to achieve fair allocation of taxing rights, especially for developing countries that are prone to massive revenue leakage through cross border transactions.","start":3532.8,"end":3574.13,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including 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this regard, Zambia wishes to fully endorse the position of the Africa Group as presented by Nigeria and other similar interventions by other delegates to the effect that it would be more important to exhaust our discussion on NEXUS before we can get to discuss methods of taxation.","start":3574.93,"end":3598.95,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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now I do not have more intervention from members.","start":3645.92,"end":3649.44,"topics":[],"words":[{"text":"So","start":3645.92,"end":3646.28},{"text":"now","start":3646.28,"end":3646.52},{"text":"I","start":3646.52,"end":3646.76},{"text":"do","start":3646.76,"end":3647},{"text":"not","start":3647,"end":3647.2},{"text":"have","start":3647.2,"end":3647.52},{"text":"more","start":3647.68,"end":3648.04},{"text":"intervention","start":3648.04,"end":3648.76},{"text":"from","start":3648.76,"end":3649.08},{"text":"members.","start":3649.08,"end":3649.44}]},{"text":"I will go to stakeholders and I will start with stakeholder one, which is Committee of Fiscal 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a lower time threshold combined with the revenue threshold would better reflect economic reality.","start":3759.68,"end":3765.84,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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matters is whether the service as a whole is economically connected to the source market.","start":3783.7,"end":3789.7,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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can then create the certainty that we require.","start":3876.61,"end":3879.49,"topics":[],"words":[{"text":"It","start":3876.61,"end":3876.93},{"text":"can","start":3876.93,"end":3877.17},{"text":"then","start":3877.17,"end":3877.45},{"text":"create","start":3877.45,"end":3877.81},{"text":"the","start":3877.81,"end":3878.09},{"text":"certainty","start":3878.09,"end":3878.61},{"text":"that","start":3878.61,"end":3878.81},{"text":"we","start":3878.81,"end":3878.97},{"text":"require.","start":3878.97,"end":3879.49}]},{"text":"It can then protect the source countries taxing rights and can also remain administrable.","start":3879.73,"end":3886.21,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value creation."},{"key":"administrative-capacity","label":"Administrative Capacity and 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sorry of two minutes.","start":3908.91,"end":3911.15,"topics":[],"words":[{"text":"Maximum,","start":3908.91,"end":3909.59},{"text":"sorry","start":3909.59,"end":3910.03},{"text":"of","start":3910.03,"end":3910.39},{"text":"two","start":3910.39,"end":3910.67},{"text":"minutes.","start":3910.67,"end":3911.15}]},{"text":"Please go ahead.","start":3911.55,"end":3912.35,"topics":[],"words":[{"text":"Please","start":3911.55,"end":3911.87},{"text":"go","start":3911.87,"end":3912.07},{"text":"ahead.","start":3912.07,"end":3912.35}]}]}],"speaker":{"name":"Lisa","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Facilitator"}},{"statement_number":50,"paragraphs":[{"sentences":[{"text":"Thank you. Madam Colleague, distinguished Chair, Excellencies and delegates, My name is Ellen Creed Adele and I represent the United Nations Major group for children and 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also a technologist who designed AI driven compliance automation tools for businesses of all sizes across all industries with global operations that cross borders between member states around the 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rightly identifies the rebalancing of taxing rights as a primary goal, I believe that it is also equally important for us to address the technological how which are the specific tools that can turn these rights into realized domestic revenue for sustainable development.","start":3940.219,"end":3958.11,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value creation."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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to ensure protocol one is future proofed against the next generation of digital business models, I'd like to propose the following actionable technological trends and recommendations to include into the paper for this committee's 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that as Negotiators, we should discuss the integration of API based reporting directly into payment gateways.","start":3985,"end":3992.84,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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taxation at the point of transaction, we can reduce the administrative burden on developing nations that currently struggle with the complex legal and factual assessments reg required to attribute profits to a permanent establishment.","start":3993,"end":4006.4,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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this is because utilizing smart contracts on distributed ledgers can automate the withholding of gross basis taxes for cross border services regardless of physical presence.","start":4006.48,"end":4016.56,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and 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demands."}],"words":[{"text":"And","start":4006.48,"end":4006.76},{"text":"this","start":4006.76,"end":4006.92},{"text":"is","start":4006.92,"end":4007.12},{"text":"because","start":4007.12,"end":4007.4},{"text":"utilizing","start":4007.4,"end":4008.08},{"text":"smart","start":4008.08,"end":4008.36},{"text":"contracts","start":4008.36,"end":4008.92},{"text":"on","start":4008.92,"end":4009.12},{"text":"distributed","start":4009.12,"end":4009.76},{"text":"ledgers","start":4009.76,"end":4010.32},{"text":"can","start":4010.32,"end":4010.64},{"text":"automate","start":4010.64,"end":4011.08},{"text":"the","start":4011.08,"end":4011.28},{"text":"withholding","start":4011.28,"end":4011.76},{"text":"of","start":4011.76,"end":4011.92},{"text":"gross","start":4011.92,"end":4012.24},{"text":"basis","start":4012.24,"end":4012.72},{"text":"taxes","start":4012.72,"end":4013.36},{"text":"for","start":4013.44,"end":4013.76},{"text":"cross","start":4013.76,"end":4014.08},{"text":"border","start":4014.08,"end":4014.44},{"text":"services","start":4014.44,"end":4014.8},{"text":"regardless","start":4014.88,"end":4015.48},{"text":"of","start":4015.48,"end":4015.68},{"text":"physical","start":4015.68,"end":4016.08},{"text":"presence.","start":4016.08,"end":4016.56}]},{"text":"This ensures that tax is remitted instantly to the source jurisdiction based on predefined nexus criteria such as a significant economic presence threshold.","start":4016.72,"end":4026.64,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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We also recommend including deploying nexus as a service service for SMEs.","start":4026.96,"end":4031.75,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"2","start":4026.96,"end":4027.32},{"text":"We","start":4027.32,"end":4027.56},{"text":"also","start":4027.56,"end":4027.8},{"text":"recommend","start":4027.8,"end":4028.32},{"text":"including","start":4028.32,"end":4028.64},{"text":"deploying","start":4028.72,"end":4029.28},{"text":"nexus","start":4029.28,"end":4029.76},{"text":"as","start":4029.76,"end":4029.92},{"text":"a","start":4029.92,"end":4030},{"text":"service","start":4030,"end":4030.08},{"text":"service","start":4030.31,"end":4030.55},{"text":"for","start":4030.63,"end":4030.91},{"text":"SMEs.","start":4030.91,"end":4031.75}]},{"text":"Member states have noted that detecting economic activities is a challenge not only for MNEs but also for small enterprises as well.","start":4031.75,"end":4039.43,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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current treaty limitations often prevent developing countries from applying domestic laws to inward investment which can cover nearly 75% of investment in some regions.","start":4039.43,"end":4050.31,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value 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so we recommend that the protocol should encourage the development of shared digital public infrastructure that allows smaller cross border service providers to voluntarily comply with local tax laws through a simplified unified interface.","start":4050.31,"end":4063.84,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"And","start":4050.31,"end":4050.63},{"text":"so","start":4050.63,"end":4050.79},{"text":"we","start":4050.79,"end":4050.91},{"text":"recommend","start":4050.91,"end":4051.31},{"text":"that","start":4051.31,"end":4051.47},{"text":"the","start":4051.47,"end":4051.67},{"text":"protocol","start":4051.67,"end":4052.15},{"text":"should","start":4052.15,"end":4052.35},{"text":"encourage","start":4052.35,"end":4052.83},{"text":"the","start":4052.83,"end":4052.99},{"text":"development","start":4052.99,"end":4053.27},{"text":"of","start":4053.67,"end":4053.99},{"text":"shared","start":4053.99,"end":4054.39},{"text":"digital","start":4054.39,"end":4054.71},{"text":"public","start":4054.71,"end":4055.11},{"text":"infrastructure","start":4055.19,"end":4055.91},{"text":"that","start":4055.91,"end":4056.11},{"text":"allows","start":4056.11,"end":4056.55},{"text":"smaller","start":4056.72,"end":4057.16},{"text":"cross","start":4057.16,"end":4057.56},{"text":"border","start":4057.56,"end":4057.96},{"text":"service","start":4057.96,"end":4058.32},{"text":"providers","start":4058.32,"end":4058.92},{"text":"to","start":4058.92,"end":4059.08},{"text":"voluntarily","start":4059.08,"end":4059.76},{"text":"comply","start":4060,"end":4060.44},{"text":"with","start":4060.44,"end":4060.64},{"text":"local","start":4060.64,"end":4060.92},{"text":"tax","start":4060.92,"end":4061.28},{"text":"laws","start":4061.28,"end":4061.64},{"text":"through","start":4061.64,"end":4061.8},{"text":"a","start":4061.8,"end":4061.96},{"text":"simplified","start":4061.96,"end":4062.4},{"text":"unified","start":4062.64,"end":4063.2},{"text":"interface.","start":4063.2,"end":4063.84}]},{"text":"And this is because the use of geolocation, verified IP proxies and device level metadata can serve as more accurate nexus markers than the identity of the payer alone.","start":4063.84,"end":4074.72,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing 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allows tax administrations to capture value where it is actually created through user engagement and data generation.","start":4074.8,"end":4081.44,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value creation."},{"key":"digital-services-taxes","label":"Digital Services Taxes","description":"Experience and analysis of DSTs as gross‑based levies on digital activities, including their creditability, scope, and lessons for designing cross‑border service taxation."}],"words":[{"text":"This","start":4074.8,"end":4075.12},{"text":"allows","start":4075.12,"end":4075.56},{"text":"tax","start":4075.56,"end":4075.8},{"text":"administrations","start":4075.8,"end":4076.72},{"text":"to","start":4076.72,"end":4076.84},{"text":"capture","start":4076.84,"end":4077.28},{"text":"value","start":4077.28,"end":4077.56},{"text":"where","start":4077.56,"end":4077.84},{"text":"it","start":4077.84,"end":4078.04},{"text":"is","start":4078.04,"end":4078.32},{"text":"actually","start":4078.4,"end":4078.8},{"text":"created","start":4078.8,"end":4079.32},{"text":"through","start":4079.32,"end":4079.52},{"text":"user","start":4079.52,"end":4079.92},{"text":"engagement","start":4079.92,"end":4080.36},{"text":"and","start":4080.36,"end":4080.56},{"text":"data","start":4080.56,"end":4080.84},{"text":"generation.","start":4080.84,"end":4081.44}]},{"text":"Irrelevant economic language link that justifies taxing rights.","start":4081.6,"end":4084.82,"topics":[],"words":[{"text":"Irrelevant","start":4081.6,"end":4082.32},{"text":"economic","start":4082.32,"end":4082.64},{"text":"language","start":4082.72,"end":4082.91},{"text":"link","start":4083.06,"end":4083.3},{"text":"that","start":4083.3,"end":4083.5},{"text":"justifies","start":4083.5,"end":4083.98},{"text":"taxing","start":4083.98,"end":4084.5},{"text":"rights.","start":4084.5,"end":4084.82}]},{"text":"And lastly three, we recommend including leveraging AI powered risk engines for base erosion.","start":4084.98,"end":4090.74,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"And","start":4084.98,"end":4085.26},{"text":"lastly","start":4085.26,"end":4085.7},{"text":"three,","start":4085.7,"end":4085.98},{"text":"we","start":4085.98,"end":4086.26},{"text":"recommend","start":4086.26,"end":4086.74},{"text":"including","start":4086.74,"end":4087.06},{"text":"leveraging","start":4087.14,"end":4087.86},{"text":"AI","start":4088.02,"end":4088.5},{"text":"powered","start":4088.5,"end":4088.94},{"text":"risk","start":4088.94,"end":4089.18},{"text":"engines","start":4089.18,"end":4089.58},{"text":"for","start":4089.58,"end":4089.74},{"text":"base","start":4089.74,"end":4090.14},{"text":"erosion.","start":4090.14,"end":4090.74}]}]},{"sentences":[{"text":"Developing countries are disproportionately affected by base erosion due to higher corporate income tax rates, creating incentives for taxpayers to shift profits via deductible payments.","start":4090.9,"end":4101.14,"topics":[],"words":[{"text":"Developing","start":4090.9,"end":4091.46},{"text":"countries","start":4091.46,"end":4091.74},{"text":"are","start":4091.74,"end":4092.02},{"text":"disproportionately","start":4092.02,"end":4092.94},{"text":"affected","start":4092.94,"end":4093.34},{"text":"by","start":4093.34,"end":4093.5},{"text":"base","start":4093.5,"end":4093.9},{"text":"erosion","start":4093.9,"end":4094.5},{"text":"due","start":4094.5,"end":4094.78},{"text":"to","start":4094.78,"end":4094.94},{"text":"higher","start":4094.94,"end":4095.22},{"text":"corporate","start":4095.22,"end":4095.78},{"text":"income","start":4095.78,"end":4096.18},{"text":"tax","start":4096.18,"end":4096.46},{"text":"rates,","start":4096.46,"end":4096.94},{"text":"creating","start":4096.94,"end":4097.38},{"text":"incentives","start":4097.38,"end":4097.98},{"text":"for","start":4097.98,"end":4098.14},{"text":"taxpayers","start":4098.14,"end":4098.7},{"text":"to","start":4098.7,"end":4098.899},{"text":"shift","start":4098.899,"end":4099.219},{"text":"profits","start":4099.219,"end":4099.7},{"text":"via","start":4099.78,"end":4100.18},{"text":"deductible","start":4100.18,"end":4100.74},{"text":"payments.","start":4100.74,"end":4101.14}]},{"text":"And so we recommend that Protocol 1 should provide a framework for the exchange of anonymized high level data signals used to train regional AI residents engines.","start":4101.14,"end":4110.279,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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tools can help tax authorities in low capacity administrations identify patterns of excessive deductible payments or treaty shopping in real time.","start":4110.279,"end":4119.199,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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Thanks Mr. Chair, I will be speaking Spanish.","start":4359.94,"end":4366.5,"topics":[],"words":[{"text":"Hello.","start":4359.94,"end":4360.42},{"text":"Thanks","start":4361.46,"end":4361.86},{"text":"Mr.","start":4361.86,"end":4362.26},{"text":"Chair,","start":4362.82,"end":4363.22},{"text":"I","start":4363.94,"end":4364.22},{"text":"will","start":4364.22,"end":4364.38},{"text":"be","start":4364.38,"end":4364.58},{"text":"speaking","start":4364.58,"end":4365.06},{"text":"Spanish.","start":4365.78,"end":4366.5}]}]},{"sentences":[{"text":"My name is Luis Mareno, representing Latin DAT and the Tax Justice Network for Latin America and the Caribbean, a member of the Global alliance for Tax justice and also along the lines of the discussion of this work Stream on Protocol 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going to briefly share some scope and ideas from our point of view on this work.","start":4382.48,"end":4388.24,"topics":[],"words":[{"text":"I'm","start":4382.48,"end":4382.8},{"text":"going","start":4382.8,"end":4382.92},{"text":"to","start":4382.92,"end":4383.12},{"text":"briefly","start":4383.12,"end":4383.52},{"text":"share","start":4383.52,"end":4383.84},{"text":"some","start":4384.24,"end":4384.64},{"text":"scope","start":4385.44,"end":4385.92},{"text":"and","start":4385.92,"end":4386.12},{"text":"ideas","start":4386.12,"end":4386.56},{"text":"from","start":4386.56,"end":4386.88},{"text":"our","start":4386.88,"end":4387.08},{"text":"point","start":4387.08,"end":4387.239},{"text":"of","start":4387.239,"end":4387.36},{"text":"view","start":4387.36,"end":4387.479},{"text":"on","start":4387.479,"end":4387.64},{"text":"this","start":4387.64,"end":4387.88},{"text":"work.","start":4387.88,"end":4388.24}]},{"text":"One of the key aspects to address is how we can move from a system that 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we know that no form of unitary taxation can work without access to consolidated financial information.","start":5994.35,"end":6000.99,"topics":[{"key":"unitary-taxation-apportionment","label":"Unitary Taxation and Apportionment","description":"Proposals to move toward unitary taxation with formulary or fractional apportionment (e.g., Amount A, UN Model Article 12B‑style proxies) to allocate consolidated net income across jurisdictions."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"Because","start":5994.35,"end":5994.67},{"text":"we","start":5994.67,"end":5994.87},{"text":"know","start":5994.87,"end":5995.07},{"text":"that","start":5995.07,"end":5995.31},{"text":"no","start":5995.31,"end":5995.59},{"text":"form","start":5995.59,"end":5995.87},{"text":"of","start":5995.87,"end":5996.11},{"text":"unitary","start":5996.11,"end":5996.67},{"text":"taxation","start":5996.67,"end":5997.19},{"text":"can","start":5997.19,"end":5997.47},{"text":"work","start":5997.47,"end":5997.71},{"text":"without","start":5997.71,"end":5998.03},{"text":"access","start":5998.03,"end":5998.43},{"text":"to","start":5998.99,"end":5999.31},{"text":"consolidated","start":5999.31,"end":6000.11},{"text":"financial","start":6000.11,"end":6000.51},{"text":"information.","start":6000.589,"end":6000.99}]},{"text":"We can only tax what we can see and count.","start":6001.79,"end":6005.03,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"We","start":6001.79,"end":6002.07},{"text":"can","start":6002.07,"end":6002.23},{"text":"only","start":6002.23,"end":6002.43},{"text":"tax","start":6002.43,"end":6002.75},{"text":"what","start":6003.07,"end":6003.35},{"text":"we","start":6003.35,"end":6003.51},{"text":"can","start":6003.51,"end":6003.71},{"text":"see","start":6003.71,"end":6004.03},{"text":"and","start":6004.43,"end":6004.75},{"text":"count.","start":6004.75,"end":6005.03}]},{"text":"And today's economy, a lot of the economic activity remains hidden and uncounted for.","start":6005.03,"end":6011.72,"topics":[{"key":"unitary-taxation-apportionment","label":"Unitary Taxation and Apportionment","description":"Proposals to move toward unitary taxation with formulary or fractional apportionment (e.g., 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taxes.","start":6013.08,"end":6024.92,"topics":[],"words":[{"text":"We","start":6013.08,"end":6013.36},{"text":"believe","start":6013.36,"end":6013.56},{"text":"that","start":6013.56,"end":6013.8},{"text":"public","start":6013.8,"end":6014.04},{"text":"country","start":6014.04,"end":6014.32},{"text":"by","start":6014.32,"end":6014.56},{"text":"country","start":6014.56,"end":6014.8},{"text":"reporting","start":6014.8,"end":6015.32},{"text":"is","start":6015.32,"end":6015.52},{"text":"the","start":6015.52,"end":6015.68},{"text":"only","start":6015.68,"end":6015.84},{"text":"way","start":6015.84,"end":6016.04},{"text":"to","start":6016.04,"end":6016.28},{"text":"effectively","start":6016.28,"end":6016.84},{"text":"guarantee","start":6016.84,"end":6017.56},{"text":"governments","start":6017.56,"end":6018.08},{"text":"and","start":6018.08,"end":6018.32},{"text":"citizens","start":6018.32,"end":6018.96},{"text":"can","start":6018.96,"end":6019.24},{"text":"understand","start":6019.24,"end":6019.56},{"text":"where","start":6019.64,"end":6019.92},{"text":"multinational","start":6019.92,"end":6020.6},{"text":"companies","start":6020.6,"end":6020.92},{"text":"operate,","start":6021,"end":6021.64},{"text":"where","start":6022.04,"end":6022.36},{"text":"they","start":6022.36,"end":6022.6},{"text":"report","start":6022.6,"end":6022.92},{"text":"their","start":6022.92,"end":6023.24},{"text":"profits","start":6023.24,"end":6023.64},{"text":"and","start":6023.64,"end":6023.84},{"text":"where","start":6023.84,"end":6024},{"text":"they","start":6024,"end":6024.16},{"text":"pay","start":6024.16,"end":6024.36},{"text":"taxes.","start":6024.36,"end":6024.92}]},{"text":"And we want to make the following points with regards to public vcr.","start":6025.16,"end":6028.92,"topics":[],"words":[{"text":"And","start":6025.16,"end":6025.44},{"text":"we","start":6025.44,"end":6025.6},{"text":"want","start":6025.6,"end":6025.76},{"text":"to","start":6025.76,"end":6025.88},{"text":"make","start":6025.88,"end":6026},{"text":"the","start":6026,"end":6026.16},{"text":"following","start":6026.16,"end":6026.44},{"text":"points","start":6026.52,"end":6026.92},{"text":"with","start":6027.08,"end":6027.4},{"text":"regards","start":6027.4,"end":6027.76},{"text":"to","start":6027.76,"end":6027.92},{"text":"public","start":6027.92,"end":6028.2},{"text":"vcr.","start":6028.2,"end":6028.92}]}]},{"sentences":[{"text":"We need to include disaggregated data on sales by final destination and in relation to this also consistent separation between third party and intra group transactions.","start":6030.36,"end":6041.72,"topics":[{"key":"unitary-taxation-apportionment","label":"Unitary 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creation."}],"words":[{"text":"We","start":6030.36,"end":6030.68},{"text":"need","start":6030.68,"end":6030.96},{"text":"to","start":6030.96,"end":6031.24},{"text":"include","start":6031.24,"end":6031.56},{"text":"disaggregated","start":6031.56,"end":6032.48},{"text":"data","start":6032.48,"end":6032.84},{"text":"on","start":6032.92,"end":6033.24},{"text":"sales","start":6033.24,"end":6033.56},{"text":"by","start":6033.56,"end":6033.8},{"text":"final","start":6033.8,"end":6034.08},{"text":"destination","start":6034.08,"end":6034.76},{"text":"and","start":6035.64,"end":6035.96},{"text":"in","start":6035.96,"end":6036.2},{"text":"relation","start":6036.2,"end":6036.52},{"text":"to","start":6036.52,"end":6036.72},{"text":"this","start":6036.72,"end":6037},{"text":"also","start":6037,"end":6037.4},{"text":"consistent","start":6038.12,"end":6038.48},{"text":"separation","start":6038.48,"end":6039.04},{"text":"between","start":6039.04,"end":6039.4},{"text":"third","start":6039.48,"end":6039.76},{"text":"party","start":6039.76,"end":6040.04},{"text":"and","start":6040.04,"end":6040.32},{"text":"intra","start":6040.32,"end":6040.64},{"text":"group","start":6040.64,"end":6040.92},{"text":"transactions.","start":6040.92,"end":6041.72}]},{"text":"Market jurisdictions have the right to know the size of their markets and where locally generated revenues ultimately flow to.","start":6042.44,"end":6049.64,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value creation."}],"words":[{"text":"Market","start":6042.44,"end":6042.8},{"text":"jurisdictions","start":6042.8,"end":6043.72},{"text":"have","start":6043.72,"end":6044},{"text":"the","start":6044,"end":6044.16},{"text":"right","start":6044.16,"end":6044.36},{"text":"to","start":6044.36,"end":6044.64},{"text":"know","start":6044.64,"end":6044.96},{"text":"the","start":6044.96,"end":6045.16},{"text":"size","start":6045.16,"end":6045.44},{"text":"of","start":6045.44,"end":6045.6},{"text":"their","start":6045.6,"end":6045.8},{"text":"markets","start":6045.8,"end":6046.28},{"text":"and","start":6046.28,"end":6046.48},{"text":"where","start":6046.48,"end":6046.72},{"text":"locally","start":6046.72,"end":6047.24},{"text":"generated","start":6047.24,"end":6047.8},{"text":"revenues","start":6047.8,"end":6048.32},{"text":"ultimately","start":6048.32,"end":6049},{"text":"flow","start":6049,"end":6049.32},{"text":"to.","start":6049.32,"end":6049.64}]},{"text":"Additional data such as the geographic distribution of user may also be needed to implement this protocol, particularly in non payment situations.","start":6050.52,"end":6060.04,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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I think that this is particularly important for nexus discussions.","start":6060.84,"end":6064.2,"topics":[{"key":"service-nexus-design","label":"Service Nexus Design","description":"Developing appropriate nexus rules for physical, hybrid, and digitally delivered services, including time, revenue, continuity, and economic impact thresholds to determine source taxing rights."}],"words":[{"text":"And","start":6060.84,"end":6061.12},{"text":"I","start":6061.12,"end":6061.28},{"text":"think","start":6061.28,"end":6061.4},{"text":"that","start":6061.4,"end":6061.56},{"text":"this","start":6061.56,"end":6061.76},{"text":"is","start":6061.76,"end":6061.96},{"text":"particularly","start":6061.96,"end":6062.56},{"text":"important","start":6062.56,"end":6062.84},{"text":"for","start":6062.84,"end":6063.16},{"text":"nexus","start":6063.16,"end":6063.64},{"text":"discussions.","start":6063.64,"end":6064.2}]},{"text":"And additionally, CBCR reports are not shared with most developing countries.","start":6065.26,"end":6070.14,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."}],"words":[{"text":"And","start":6065.26,"end":6065.46},{"text":"additionally,","start":6065.46,"end":6066.22},{"text":"CBCR","start":6066.7,"end":6067.46},{"text":"reports","start":6067.46,"end":6067.74},{"text":"are","start":6067.82,"end":6068.14},{"text":"not","start":6068.14,"end":6068.34},{"text":"shared","start":6068.34,"end":6068.82},{"text":"with","start":6068.82,"end":6069.02},{"text":"most","start":6069.02,"end":6069.26},{"text":"developing","start":6069.26,"end":6069.82},{"text":"countries.","start":6069.82,"end":6070.14}]}]},{"sentences":[{"text":"And this is partially because of the current restrictive rules that allow CBCR reports to be shared only with countries where companies have a legal presence.","start":6070.78,"end":6080.86,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value creation."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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a permanent establishment or a constituent entity as well.","start":6081.26,"end":6085.66,"topics":[],"words":[{"text":"So","start":6081.26,"end":6081.54},{"text":"a","start":6081.54,"end":6081.7},{"text":"permanent","start":6081.7,"end":6082.18},{"text":"establishment","start":6082.18,"end":6082.9},{"text":"or","start":6082.9,"end":6083.22},{"text":"a","start":6083.22,"end":6083.46},{"text":"constituent","start":6083.46,"end":6084.1},{"text":"entity","start":6084.1,"end":6084.54},{"text":"as","start":6085.18,"end":6085.46},{"text":"well.","start":6085.46,"end":6085.66}]},{"text":"As we've been discussing last week of the restrictive UI framework, we do believe that market and source jurisdictions without a legal presence also need to have access to these reports.","start":6085.66,"end":6097.99,"topics":[{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, 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Madam Khalid, I will be brief as we previously indicated in several occasions through interventions submissions and even submissions under the service articles discussed by the Committee of 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global business community has repeatedly emphasized the negative economic impact of gross basis revolving taxation in the case of services, particularly in the case of our submission on Article 12 AA at the time still called Article XX.","start":6351.94,"end":6366.26,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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have collected submissions and examples from African companies, companies in Latin America, Asia Pacific, Europe on this negative expected negative effect.","start":6366.26,"end":6375.6,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open economies."}],"words":[{"text":"We","start":6366.26,"end":6366.42},{"text":"have","start":6366.42,"end":6366.54},{"text":"collected","start":6366.54,"end":6366.94},{"text":"submissions","start":6366.94,"end":6367.46},{"text":"and","start":6367.46,"end":6367.66},{"text":"examples","start":6367.66,"end":6368.26},{"text":"from","start":6368.58,"end":6368.9},{"text":"African","start":6368.9,"end":6369.38},{"text":"companies,","start":6369.38,"end":6369.7},{"text":"companies","start":6369.86,"end":6370.22},{"text":"in","start":6370.22,"end":6370.41},{"text":"Latin","start":6370.56,"end":6370.8},{"text":"America,","start":6370.8,"end":6371.12},{"text":"Asia","start":6371.12,"end":6371.52},{"text":"Pacific,","start":6371.52,"end":6372},{"text":"Europe","start":6372,"end":6372.4},{"text":"on","start":6373.04,"end":6373.4},{"text":"this","start":6373.4,"end":6373.76},{"text":"negative","start":6373.92,"end":6374.44},{"text":"expected","start":6374.44,"end":6374.8},{"text":"negative","start":6374.8,"end":6375.28},{"text":"effect.","start":6375.28,"end":6375.6}]},{"text":"The document is available on our website.","start":6375.6,"end":6377.56,"topics":[],"words":[{"text":"The","start":6375.6,"end":6375.88},{"text":"document","start":6375.88,"end":6376.28},{"text":"is","start":6376.28,"end":6376.48},{"text":"available","start":6376.48,"end":6376.76},{"text":"on","start":6376.76,"end":6377},{"text":"our","start":6377,"end":6377.24},{"text":"website.","start":6377.24,"end":6377.56}]},{"text":"We are also happy to share with delegates from a tax cost perspective.","start":6377.56,"end":6381.44,"topics":[],"words":[{"text":"We","start":6377.56,"end":6377.8},{"text":"are","start":6377.8,"end":6377.92},{"text":"also","start":6377.92,"end":6378.08},{"text":"happy","start":6378.08,"end":6378.36},{"text":"to","start":6378.36,"end":6378.52},{"text":"share","start":6378.52,"end":6378.68},{"text":"with","start":6378.68,"end":6378.84},{"text":"delegates","start":6378.84,"end":6379.44},{"text":"from","start":6380,"end":6380.28},{"text":"a","start":6380.28,"end":6380.4},{"text":"tax","start":6380.4,"end":6380.56},{"text":"cost","start":6380.56,"end":6380.84},{"text":"perspective.","start":6380.84,"end":6381.44}]}]},{"sentences":[{"text":"As mentioned by many delegates today as well, there is a risk of over taxation including double and multilayer taxation.","start":6381.44,"end":6387.44,"topics":[{"key":"double-taxation-elimination","label":"Double Taxation Elimination","description":"Ensuring shared taxing rights without over‑taxation through rate limits, foreign tax credits, and proxy measures that approximate net outcomes under gross withholding 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each and every service payment made to service providers, businesses may have no other choice but to pass on the cost.","start":6387.76,"end":6396.4,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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will bear the increased cost to the higher services to the consumers?","start":6398.07,"end":6401.03,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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negative effects on trade and investment and overall GDP can hardly lead to that.","start":6412.79,"end":6417.35,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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it highlights how the revenues possibly generated by revolving gross basis tax will be completely offset leading to a net fiscal loss of 241 million USD per year for the Global South.","start":6427.79,"end":6439.55,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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DSC there are different studies on the negative impact on trade and tax.","start":6440.19,"end":6443.91,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open economies."},{"key":"digital-services-taxes","label":"Digital Services Taxes","description":"Experience and analysis of DSTs as gross‑based levies on digital activities, including their creditability, scope, and lessons for designing cross‑border service 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this respect, Madam Khaled, an exclusive reliance on net based taxation has well known constraints.","start":6558.74,"end":6566.18,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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especially simple enforceable withholding time measures linked to identifiable payments to non residents because they are more compatible with the administrative realities of many developing countries and can better protect the source tax base where value is clearly created in the market jurisdiction by payment certificate to trace.","start":6581.48,"end":6608.68,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information demands."},{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing 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we want really to emphasize that discussion is going to be very important.","start":6967.86,"end":6971.71,"topics":[],"words":[{"text":"So","start":6967.86,"end":6968.14},{"text":"we","start":6968.14,"end":6968.3},{"text":"want","start":6968.3,"end":6968.5},{"text":"really","start":6968.5,"end":6968.82},{"text":"to","start":6968.82,"end":6969.1},{"text":"emphasize","start":6969.1,"end":6969.54},{"text":"that","start":6969.54,"end":6969.78},{"text":"discussion","start":6969.78,"end":6970.26},{"text":"is","start":6970.26,"end":6970.44},{"text":"going","start":6970.67,"end":6970.83},{"text":"to","start":6970.83,"end":6970.99},{"text":"be","start":6970.99,"end":6971.15},{"text":"very","start":6971.15,"end":6971.39},{"text":"important.","start":6971.39,"end":6971.71}]}]},{"sentences":[{"text":"Having said that, we strongly support the idea of having gross taxation as like a primary mechanism, which is something Madam Chair, you are explaining earlier to ensure that countries are able to 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so that will be a starting point in whatever sort of solutions we want to design.","start":7001.18,"end":7007.82,"topics":[],"words":[{"text":"And","start":7001.18,"end":7001.58},{"text":"so","start":7001.58,"end":7001.98},{"text":"that","start":7002.06,"end":7002.34},{"text":"will","start":7002.34,"end":7002.54},{"text":"be","start":7002.54,"end":7002.78},{"text":"a","start":7002.78,"end":7002.98},{"text":"starting","start":7002.98,"end":7003.54},{"text":"point","start":7003.54,"end":7003.9},{"text":"in","start":7003.98,"end":7004.34},{"text":"whatever","start":7004.34,"end":7004.86},{"text":"sort","start":7005.02,"end":7005.38},{"text":"of","start":7005.38,"end":7005.58},{"text":"solutions","start":7005.58,"end":7006.02},{"text":"we","start":7006.02,"end":7006.26},{"text":"want","start":7006.26,"end":7006.54},{"text":"to","start":7006.86,"end":7007.26},{"text":"design.","start":7007.42,"end":7007.82}]},{"text":"But we know the challenges associated with the gross taxation, primarily 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doing this work, a lot of delegates have, or several delegates have raised issues on the economic efficiency and neutrality issues around gross basis taxations.","start":7488.95,"end":7501.75,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open 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I also hear positive feedback on a preference for both businesses and administrations for gross basis taxation based on simplicity.","start":7502.15,"end":7512.79,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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I think there is an argument for it.","start":7514.71,"end":7517.43,"topics":[],"words":[{"text":"So","start":7514.71,"end":7514.95},{"text":"I","start":7515.19,"end":7515.47},{"text":"think","start":7515.47,"end":7515.67},{"text":"there","start":7515.67,"end":7515.95},{"text":"is","start":7515.95,"end":7516.23},{"text":"an","start":7516.23,"end":7516.47},{"text":"argument","start":7516.47,"end":7516.95},{"text":"for","start":7516.95,"end":7517.15},{"text":"it.","start":7517.15,"end":7517.43}]}]},{"sentences":[{"text":"However, I think when we talk about gross versus net basis, we have to approach it in a holistic manner.","start":7517.51,"end":7527.99,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of 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so I think there's no way to skate around the this this is something that should be explored by this 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to do more justice to it, I believe there should be an evaluation around the different profit attribution models we have in existence.","start":7543.63,"end":7554.43,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value 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by that I look, I'm thinking of modifications to the ARM slant principle, market oriented approaches including location savings and market premiums, formulary approaches including formulary apportionment and fractional apportionment.","start":7555.31,"end":7573.13,"topics":[{"key":"unitary-taxation-apportionment","label":"Unitary Taxation and Apportionment","description":"Proposals to move toward unitary taxation with formulary or fractional apportionment (e.g., Amount A, UN Model Article 12B‑style proxies) to allocate consolidated net income across 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then we also have presumptive taxation methods where we have some around deemed profits, reputable administrative presumptions and fractional apportionment close to or attached to premium presumptions.","start":7573.53,"end":7591.24,"topics":[{"key":"unitary-taxation-apportionment","label":"Unitary Taxation and Apportionment","description":"Proposals to move toward unitary taxation with formulary or fractional apportionment (e.g., Amount A, UN Model Article 12B‑style proxies) to allocate consolidated net income across jurisdictions."},{"key":"administrative-capacity","label":"Administrative Capacity and Simplicity","description":"Designing methods compatible with developing countries’ enforcement realities, prioritizing simple, enforceable withholding and minimizing complexity and information 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then ultimately we still have the gross basis taxation we have discussed and several delegates have raised modifications that could be made for it and variances including tiered rates and classifications based on service types.","start":7591.96,"end":7609.48,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs Net Taxation","description":"Debate over taxing cross‑border services on a gross withholding basis versus net profit basis, weighing simplicity and enforceability against fairness and the risk of over‑taxation."},{"key":"differentiated-service-rates","label":"Differentiated Service Rates","description":"Calibrating rates or scope by service type, margin, or firm size to reduce over‑taxation and improve administrability, while managing categorization and dispute 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my point is that there's like just to recoil other speakers, there is a spectrum.","start":7610.04,"end":7615.96,"topics":[],"words":[{"text":"So","start":7610.04,"end":7610.36},{"text":"my","start":7610.36,"end":7610.64},{"text":"point","start":7610.64,"end":7610.92},{"text":"is","start":7610.92,"end":7611.12},{"text":"that","start":7611.12,"end":7611.32},{"text":"there's","start":7611.32,"end":7611.8},{"text":"like","start":7612.2,"end":7612.6},{"text":"just","start":7612.68,"end":7613},{"text":"to","start":7613,"end":7613.2},{"text":"recoil","start":7613.2,"end":7613.76},{"text":"other","start":7613.76,"end":7614.12},{"text":"speakers,","start":7614.28,"end":7614.92},{"text":"there","start":7614.92,"end":7615.08},{"text":"is","start":7615.08,"end":7615.24},{"text":"a","start":7615.24,"end":7615.44},{"text":"spectrum.","start":7615.44,"end":7615.96}]},{"text":"There is so much we can explore like there's a wide array of options that should be explored by this work to do justice to 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this can only be done through detailed economic analysis.","start":7625.55,"end":7631.55,"topics":[{"key":"economic-impact-analysis","label":"Economic Impact Analysis","description":"Using evidence (e.g., IMF, Oxford Economics, UNU‑WIDER) to assess how gross‑based service withholding affects trade, investment, GDP, and welfare, especially for small open economies."}],"words":[{"text":"And","start":7625.55,"end":7625.87},{"text":"this","start":7625.87,"end":7626.11},{"text":"can","start":7626.11,"end":7626.39},{"text":"only","start":7626.39,"end":7626.71},{"text":"be","start":7626.71,"end":7626.99},{"text":"done","start":7626.99,"end":7627.31},{"text":"through","start":7627.47,"end":7627.87},{"text":"detailed","start":7629.55,"end":7630.23},{"text":"economic","start":7630.23,"end":7630.59},{"text":"analysis.","start":7630.75,"end":7631.55}]}]},{"sentences":[{"text":"And so I feel that if we are talking about fairness, yes, there's fairness in relation to allocation of taxing rights, but 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I think we shouldn't ignore that.","start":7650.94,"end":7653.78,"topics":[],"words":[{"text":"And","start":7650.94,"end":7651.3},{"text":"I","start":7651.54,"end":7651.82},{"text":"think","start":7651.82,"end":7652.02},{"text":"we","start":7652.02,"end":7652.26},{"text":"shouldn't","start":7652.26,"end":7652.82},{"text":"ignore","start":7652.9,"end":7653.46},{"text":"that.","start":7653.46,"end":7653.78}]},{"text":"Whatever should be the outcome of this work should be weighed against every existing or all principles of taxation 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so it should be well grounded, as I mentioned, and it should be grounded on analysis.","start":7664.74,"end":7671.5,"topics":[],"words":[{"text":"And","start":7664.74,"end":7665.14},{"text":"so","start":7665.14,"end":7665.46},{"text":"it","start":7665.46,"end":7665.66},{"text":"should","start":7665.66,"end":7665.82},{"text":"be","start":7665.82,"end":7666.02},{"text":"well","start":7666.02,"end":7666.3},{"text":"grounded,","start":7666.3,"end":7666.9},{"text":"as","start":7667.34,"end":7667.46},{"text":"I","start":7667.46,"end":7667.62},{"text":"mentioned,","start":7667.62,"end":7668.18},{"text":"and","start":7668.18,"end":7668.42},{"text":"it","start":7668.42,"end":7668.66},{"text":"should","start":7668.66,"end":7668.98},{"text":"be","start":7668.98,"end":7669.34},{"text":"grounded","start":7669.42,"end":7670.02},{"text":"on","start":7670.02,"end":7670.3},{"text":"analysis.","start":7670.62,"end":7671.5}]},{"text":"And I feel a somewhat fair outcome should be that businesses are not penalized by the choices we make here and that there is fair allocation of tax revenues to all jurisdictions involved in alignment with the principles that have been enshrined in Article 5 of the Framework Convention.","start":7672.62,"end":7699.43,"topics":[{"key":"allocation-of-taxing-rights","label":"Allocation of Taxing Rights","description":"Balancing taxing powers between source and residence jurisdictions to retain meaningful residual rights in residence states while protecting source‑based value 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thank you, thank you very much for that input.","start":8119.06,"end":8124.099,"topics":[],"words":[{"text":"I","start":8119.06,"end":8119.38},{"text":"thank","start":8119.38,"end":8119.66},{"text":"you,","start":8119.66,"end":8119.94},{"text":"thank","start":8121.46,"end":8121.78},{"text":"you","start":8121.78,"end":8121.94},{"text":"very","start":8121.94,"end":8122.14},{"text":"much","start":8122.14,"end":8122.34},{"text":"for","start":8122.34,"end":8122.58},{"text":"that","start":8122.58,"end":8122.9},{"text":"input.","start":8123.46,"end":8124.099}]}]}],"speaker":{"name":null,"affiliation":"Committee of Fiscal Studies","affiliation_full":"Committee of Fiscal Studies","group":null,"function":"Stakeholder"}},{"statement_number":78,"paragraphs":[{"sentences":[{"text":"I don't have any more speakers on my list 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we were still missing the this last discussion on implementation.","start":8156.53,"end":8162.31,"topics":[],"words":[{"text":"Because","start":8156.53,"end":8156.93},{"text":"we","start":8157.57,"end":8157.85},{"text":"were","start":8157.85,"end":8158.05},{"text":"still","start":8158.05,"end":8158.29},{"text":"missing","start":8158.29,"end":8158.73},{"text":"the","start":8158.73,"end":8159.09},{"text":"this","start":8159.91,"end":8160.11},{"text":"last","start":8160.11,"end":8160.47},{"text":"discussion","start":8160.55,"end":8161.19},{"text":"on","start":8161.19,"end":8161.47},{"text":"implementation.","start":8161.47,"end":8162.31}]},{"text":"Yeah, so we have that tomorrow we will come back to Nexus again if you are interested in making more 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welcome to do that tomorrow.","start":8176.47,"end":8178.03,"topics":[],"words":[{"text":"Very","start":8176.47,"end":8176.79},{"text":"welcome","start":8176.79,"end":8177.15},{"text":"to","start":8177.15,"end":8177.31},{"text":"do","start":8177.31,"end":8177.47},{"text":"that","start":8177.47,"end":8177.63},{"text":"tomorrow.","start":8177.63,"end":8178.03}]},{"text":"I think we'll have time to do that.","start":8178.03,"end":8179.51,"topics":[],"words":[{"text":"I","start":8178.03,"end":8178.15},{"text":"think","start":8178.15,"end":8178.27},{"text":"we'll","start":8178.27,"end":8178.51},{"text":"have","start":8178.51,"end":8178.71},{"text":"time","start":8178.71,"end":8178.91},{"text":"to","start":8178.91,"end":8179.07},{"text":"do","start":8179.07,"end":8179.23},{"text":"that.","start":8179.23,"end":8179.51}]},{"text":"So I don't know if 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thank you all for today.","start":8195.16,"end":8197,"topics":[],"words":[{"text":"And","start":8195.16,"end":8195.56},{"text":"thank","start":8195.72,"end":8196.08},{"text":"you","start":8196.08,"end":8196.28},{"text":"all","start":8196.28,"end":8196.52},{"text":"for","start":8196.52,"end":8196.72},{"text":"today.","start":8196.72,"end":8197}]},{"text":"And we'll see you tomorrow at 10 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