ICAI issued Exposure Draft on International Tax Reform:

ICAI issued Exposure Draft on International Tax Reform The Institute of Chartered Accountants of India(ICAI) has issued Exposure Draft on on International Tax Reform- Pillar Two Model Rules (proposed amendments to IAS 12). Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of IFRS Foundation. The IASB, before issuing the new/amendments to IFRS Standards, issues consultative documents [such as Discussion Paper (DP), Exposure Draft (ED) etc] seeking public comments from across the globe. The Accounting Standards Board (ASB) of the ICAI is inviting comments on the consultative documents released by the IASB in order to give the various stakeholders in India a chance to voice their concerns at the initial stage of international standard-setting itself. The Indian stakeholders' knowledge of the preparations needed for Ind AS implementation in accordance with adherence to global timelines is also helpful. Recently, the IASB has issued the following Exposure Draft for public comments:

Exposure Draft on International Tax Reform- Pillar Two Model Rules (proposed amendments to IAS 12)

The Organization for Economic Co-operation and Development (OECD) released its Pillar Two model rules in December 2021, which implement a top-up tax system to implement a global minimum tax for large multinational enterprises. IASB released the aforementioned Exposure Draft in response to concerns regarding the accounting for deferred taxes uncertainty brought on by the rules and the urgent need for clarity in light of the impending enactment of tax law to implement the rules in some jurisdictions. The ideas in this Exposure Draft would establish a temporary exemption from the targeted disclosure requirements and the accounting for deferred taxes resulting from the application of the aforementioned rules.

Invitation to Comment

The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments from public.

How to Comment

Comments on the abovementioned ED may be submitted through any of the following modes, so as to be received not later than February 16, 2023 : 1. Electronically: Click on http://www.icai.org/comments/asb/ to submit comment online (Preferred method) 2. Email: Comments can be sent to: [email protected] 3. Postal: Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi 110 002 Further clarifications on this Exposure Draft may be sought by e-mail to [email protected]