06 June 2021 Daily Current Affairs

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Every member of either House of Parliament, before taking his seat in the House, has to make and subscribe to an oath or affirmation before the

 a) President of India

 b) Presiding officer of the House

 c) Chief Justice of India

 d) Leader of the concerned party or coalition

2) Consider the following statements.

The Constitution requires that a person must prove his majority in the legislative assembly before he is appointed as the Chief Minister.

Only a person who is a member of the legislative assembly can be appointed as Chief Minister.

Which of the above statements is/are correct?

 a) 1 only

 b) 2 only

 c) Both 1 and 2

 d) Neither 1 nor 2

3)Consider the following statements.

1.The Tenth Schedule was inserted into Constitution in 1985 by 42nd Amendment Act.

2.The anti-defection law allows the Speaker/Chairperson to disqualify such a member who goes against the voting directions of the whip.

3.Anti-defection law provides stability to the government by preventing shifts of party allegiance.

Which of the above statements is/are correct?

 a) 3 only

 b) 1, 2

 c) 2, 3

 d) 1, 2, 3

Map of G-7 Countries

Prelims Based Facts :-

G7 nations agree on uniform minimum corporate tax : The Group of Seven said it would back a minimum global corporation tax rate of at least 15%, and put in place measures to ensure that taxes were paid in the countries where businesses operate.

The accord, which could form the basis of a global pact next month, is aimed at ending a decades long “race to the bottom”, in which countries have competed to attract corporate giants with ultra-low tax rates and exemptions.

Why a Minimum Corporate Tax :- Major economies are aiming to discourage multinationals from shifting profits — and tax revenues — to low tax countries regardless of where their sales are made.

Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.

How would a global minimum tax work? :- The global minimum tax rate would apply to overseas profits. Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the minimum rate, eliminating the advantage of shifting profits.

2) What is a Bad Bank :- A bad bank is a bank set up to buy the bad loans and other illiquid holdings of another financial institution. The entity holding significant nonperforming assets will sell these holdings to the bad bank at market price. By transferring such assets to the bad bank, the original institution may clear its balance sheet—although it will still be forced to take write-downs.

Bad banks are set up to buy the bad loans and other illiquid holdings of another financial institution.

Critics of bad banks say that the option encourages banks to take undue risks, leading to moral hazard, knowing that poor decisions could lead to a bad bank bailout.

3) First human infection of the H10N3 bird flu :- China has confirmed the first instance of human infection from H10N3, a rare strain of a virus that normally infects poultry.

H5N1 is the most common virus causing bird flu, or avian influenza. Though largely restricted to birds, and often fatal to them, it can cross over to other animals, as well as humans.
According to the WHO, the H5N1 was first discovered in humans in 1997 and has killed almost 60% of those infected. Though it is not known to transmit easily among humans, the risk remains.

In 2013, human infections with the influenza A(H7N9) virus were reported in China.

4)U.S. delays tariffs against digital services tax := During the past week, the United States announced and then immediately suspended a 25% tariff on $2 billion of imports from six countries, including India, as a retaliatory measure against each of these countries’ imposition of a digital services tax impacting the giant tech corporations of Silicon Valley, including the likes of Alphabet, Amazon, Apple, Facebook and Microsoft.

The essence of the argument made by the USTR office is that a “Section 301” investigation initiated by the Trump administration in June 2020 found digital services taxes imposed by each of these countries to be discriminatory against U.S. tech firms.

Under Section 301 of the Trade Act of 1974, the USTR enjoys a range of responsibilities and authority to investigate and take action to enforce U.S. national interests under trade agreements and respond to certain foreign trade practices. Until recently, this facility was used by multiple administrations to build cases and pursue dispute settlements at the World Trade Organization (WTO).

The Finance Bill, 2021, introduced an amendment imposing a 2% digital service tax on trade and services by non-resident e-commerce operators with a turnover of over ₹2 crore. According to reports, early estimates by the USTR suggest this tax could yield approximately $55 million annually. Negotiations with Washington that may result in the scaling back of this tax would imply that a part of this revenue would be lost to the exchequer, depending on the final rate agreed.
On the other hand, close to $118 million of India’s exports to the U.S. would be subject to the tariff proposed by the USTR, impacting 26 categories of goods, including basmati rice, cigarette paper, cultured pearls, semiprecious stones, certain gold and silver jewellery items and specific types of furniture products.

5) BEC ( Bose Einstein Condensate ) :- A Bose-Einstein condensate is a group of atoms cooled to within a hair of absolute zero. When they reach that temperature the atoms are hardly moving relative to each other; they have almost no free energy to do so. At that point, the atoms begin to clump together, and enter the same energy states. They become identical, from a physical point of view, and the whole group starts behaving as though it were a single atom. 

Bose-Einstein condensates were first predicted theoretically by Satyendra Nath Bose (1894-1974), an Indian physicist who also discovered the subatomic particle named for him, the boson. Bose was working on statistical problems in quantum mechanics, and sent his ideas to Albert Einstein. Einstein thought them important enough to get them published. As importantly, Einstein saw that Bose’s mathematics — later known as Bose-Einstein statistics — could be applied to atoms as well as light.

6)New database for missing persons := The Interpol has launched a new global database named ‘IFamilia’ to identify missing persons through family DNA and help the police solve cold cases in member countries.

Interpol was formed in 1923, its HQ is in Lyon, France.

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