On ICAI Foundation Day, Rakesh Nangia Anderson was awarded the professional ICON award. The present Draupadi Murmur graced the seventy-fifth foundation day. The governor of Uttarakhand, General Gurmit Singh presented the honour to Rakesh Nangia in the Dehradun branch. Rakesh Nangia is the managing director of Nangia and Co LLP. The blog talks about the achievements of Rakesh Nangia and the importance of international taxation.
CA Foundation Day:
The president of India graced the 75th foundation day on 1st July 2023. The president addressed the huge gathering of the CA community. She said that the day is not only for chartered accountants but also for accountants and auditors. The president appreciated the work of the auditors. She said that due to chartered accountants, the tax base and revenue are increasing year on year. The 74th foundation day was held in Delhi. The function was graced by Shri Girish Chandra Murmu, the comptroller and auditor general of India. Shri Girish Chandra Murmu said the profession brings the global practices, standards, education and training to India. He said that the real-time information from ICAI improves the tax framework and strategy. Mr. Rakesh Nangia was honoured by the Governor of Uttarakhand. The celebration was in the Dehradun branch.
Rakesh Nangia Anderson:
Rakesh Nangia started his company in his home town. Nangia Anderson India Pvt Ltd is a top tax consulting and advisory firm. The company has handled Fortune 500 multinationals in India. His consultancy is in the matters of FDI policy, cross-border tax, international tax, inbound and outbound mergers, entry-level strategy, tax policy advocacy, risk advisory, and cyber security. Dehradun is his hometown. He started the company with a capital of 2 Lakhs. The firm evolved with a growth of 1000 plus employees. He received the professional ICON award for leadership skills, unwavering commitment, and innovative thinking. His approach towards the profession has inspired the future generation.
He is popular for his expertise in restructuring the transfer price and related compliances. He had received the most promising entrepreneur from economic times in the year 2020. In the international tax review, the UK ranked him as the top tax leader. He got an award for eight consecutive years for running a tax and regulatory firm. He is on the board of directors for prominent organisations and trusted companies. He was in the position of president for the Indo-Canadian business chamber. He is a member of the FICCI Council for Taxation. He is the chairman of the National Council of International Taxes. He is a member of the CII committee for taxation, the Indo-American Chamber of Commerce, and the Chambers of Commerce and Industry. He is the representative of India and foreign companies doing business in India. His profile and achievements taught us the importance of international taxation and transfer price structures.
Importance of international taxation:
After Covid hit, India showed a GDP growth of about 8.7 per cent in 2021. There is a necessity to adjust to global trends. International taxation is a crucial subject and need of the hour. The Organisation for Economic Cooperation and Development monitor the companies involved in global operations. Large corporations relocate to save money on taxes. The global tax rate of fifteen per cent increases the global revenue by $150 billion.
International taxation charges are fixed based on the concept of residence and source-based taxation. The residence-based tax collects tax irrespective of the location of the income. Source-based income tax is a location-based one. Multinational companies use strategies to shift revenue from high-tax places to low-tax places. The strategies followed by global organisations are called tax havens based on erosion and profit shifting. An understanding of tax structure is essential to avoid double taxation in a country. International tax practitioners understand the double taxation cases and strategies to reduce tax in a global environment.
The global market is highly competitive and digital. The transfer price is based on the tax rate of the country. The country with less tax gets more business. The country with high taxes for foreign companies gets less business. Companies dealing with offshore business transfer their business operations to some other country. The outsourcing business works without physical presence and abides by the company law of the other country. Global companies transfer corporate identities to reduce tax. The parent company changed its operation to the Subsidiary Company and the subsidiary company changed its identity to the parent company. The companies operating in the United States refer to this identity shift as expatriation.
Countries have tax agreements to improve their business and reduce the tax burden. Many nations are operating with electronic fillings. The changes in international regulations make the companies employ a person for international tax consultation.
On the completion of 75 years, the ICAI introduced an award of “40 under 40” to 40 chartered accountants. Chartered accountants contribute a large part to nation-building. The categories of awards presented by ICAI are entrepreneurs, CEOs, CXOs, an achiever in public service, and global achievers.