If ending Google Tax is quid, what is quo, for which quid is being given away?

Whether giving up the Google Tax will get India reprieve in the tariff war that US President Donald Trump has promised to unleash on the world at large remains to be seen. As many as 18 countries levy a so-called digital service tax on companies that generate revenue from a jurisdiction without necessarily being physically present in the jurisdiction. Most of such remote service providers are American tech giants, which create subsidiaries in low-cost jurisdictions to sell An ideal solution to giant companies generating revenue and profits from jurisdictions without paying tax to their authorities is a global, multilateral agreement to collect the tax centrally and distribute it among the countries from where the profits are generated, in proportion to the profit generated in each jurisdiction. Transfer pricing, tax arbitrage making use of the world’s generous supply of low-tax jurisdictions—more widely known by the less genteel term, tax havens—and the canny brains at professional services firms such as PWC, EY, KPMG, and Deloitte, together make sure that the world’s largest and most profitable companies pay very little tax anywhere.