16 JUNE CURRENT AFFAIRS (MCQ)

Q1. Consider the following statements in context of global minimum tax:

1. The global minimum tax rate would apply to overseas profits.
2. Countries cannot set the local corporate tax rate now.
   Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Solution: a)

Explanation:
Statement 2 is incorrect
 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.
 The recent G7 meeting arrived at a consensus to apply a global minimum tax of at
least 15 per cent.
 The global minimum tax rate would apply to overseas profits.

Q2. Recently the terms- Pillar 1 and Pillar 2 were in the news. They are used in context
of:

a) Reserve Bank’s financial reforms
b) Basel III norms
c) Base Erosion and Profit Shifting
d) Terror financing

Solution: c)

Explanation:
What’s Base Erosion and Profit Shifting (BEPS)?
 Multinational Firms make profits in one jurisdiction, and shift them across borders
by exploiting gaps and mismatches in tax rules, to take advantage of lower tax rates
and, thus, not paying taxes to the country where the profit is made.
OECD BEPS Project:
 The OECD, under the authority of the Group of 20 countries, has considered ways
to revise tax treaties, tighten rules, and to share more government tax information
under the BEPS project, and has issued action plans.
 As part of the action plan, the OECD framed following two complementary
pillars to address the issue:
Pillar 1: Re-allocation of profit and revised nexus rules:
 New nexus rule to be based on sales and not on physical presence. The new nexus
rules would apply even where goods are sold remotely or through distributors.
 New profit allocation rules to increase tax certainty: This new profit allocation
rule would be applicable to organization having ‘nexus’ in a jurisdiction.
 The rules recommend a three-tier profit allocation mechanism.
Pillar 2: Global anti-base erosion mechanism: intended to identify and tackle remaining
issues identified by OECD under the BEPS framework.
 The Pillar Two proposal was the Organisation for Economic Co-operation and
Development’s (OECD) plan to plug the remaining Base Erosion and Profit Shifting
(BEPS) issues.
 Objectives: It aims to provide jurisdictions the right to “tax back” where other
jurisdictions have either not exercised their primary taxing right or have exercised
it at low levels of effective taxation.
 The move intends to achieve minimum effective taxation of more than 10%,
possibly up to 15%.
The objective is to minimise tax incentives and ensure that companies choose to be
situated in a particular country based on other commercial benefits.

Q3. Consider the following statements about equalization levy of India:

1. It has provisions for taxing digital transactions only.
2. It is aimed at taxing (B2B) business to business transactions.
   Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Solution: c)

Explanation:
Both statements are correct.
About Equalization levy or Google tax:
 It was introduced in India with the intention of taxing the digital transactions i.e.
the income accruing to foreign e-commerce companies from India.
 It is aimed at taxing (B2B) business to business transactions.
 It is levied at 6% on payments made to offshore platforms hosting online
advertisements, it will be taxed only at 2% on e-commerce transactions.
 Thus, the levy captures online sales of any goods or provision of any services by or
through a non-resident e-commerce operator.

Q4. “Pyrostria laljii” have been recently seen in news is –

a) A new species of Tree found in Andaman and Nicobar Islands
b) A new species of butterfly found in Western Ghats
c) A new species of reptile found in Kerala
d) None of the above

Solution: a)

Explanation:
 A 15-meter-tall tree that belongs to the genus of the coffee family has recently been
discovered from the Andaman Islands by a team of researchers from India and the
Philippines. The new species, Pyrostria laljii, is also the first record of the genus
Pyrostria in India, the researchers said. Plants belonging to genus Pyrostria are
usually found in Madagascar but the recently discovered species is new to science.
 The tree is distinguished by a long stem with a whitish coating on the trunk, and
oblong-obovate leaves with a cuneate base, and was first reported from South
Andaman’s Wandoor forest. The other places in the Andaman and Nicobar Islands
where the tree could be located are the Tirur forest near the Jarawa Reserve Forest
and the Chidiya Tapu (Munda Pahar) forest.
 Pyrostria laljii has been assessed as ‘Critically Endangered’ based on the
International Union for Conservation of Nature’s (IUCN) Red List criteria.

Q5. Which of the following are affected by Noise Pollution?

1. Trees
2. Birds
3. Animals
4. Humans
   Select the correct answer using the code below:

a) 4 only
b) 2 and 4 only
c) 1, 2 and 4 only
d) 1, 2, 3 and 4

Solution: d)

Explanation:
All the options are correct.
 Noise from construction, industry, and the building of infrastructure such as roads
and pipelines has increased dramatically in the recent years, and with urban
growth, human establishments such as industries are being set up closer to forests.
 Researchers in the U.S. looked at tree populations in New Mexico that had been
exposed to a high level of artificial noise created by natural gas wells in the region.
The researchers looked at two species of trees – namely the pinyon pine and the
Utah juniper. They built upon research they had already done, which showed that
western scrub jays avoid noisy areas.
 The researchers found that pinyon pine and juniper trees were found less in regions
where there were more gas wells and more noise (in line with the 2007 findings) and
their saplings were also less abundant in these regions.
 The study thus pointed out that removal of the noise doesn’t necessarily
immediately result in a recovery of ecological function. While some plants do recope,
others don’t, depending on how the community of creatures around them changes.
This can alter the entire ecosystem in the region.
How is vegetation affected?
 Many plants and trees rely on birds and animals to carry their pollen to other flowers
or to disperse their seeds, but noise pollution scares off these species. In order to
adapt to noise, they change their behaviour or move to quieter places. This, in turn,
affects vegetation.
 Excessive noise harms human health and interferes with people’s daily activities. It
can disturb sleep, cause cardiovascular and psychophysiological effects.

Q6. Which of the following steps are taken by Indian Government to curb carbon
emissions?

1. Introduction BS-VI norms
2. H-CNG Buses
3. Zig-Zag Technology in Brick Kilns
   Select the correct answer using the code below:

a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2 and 3

Solution: d)

Explanation:
 The switch to BS-VI vehicles was to happen in 2022 but looking at the poor air
condition, the move was advanced by four years.
 All vehicles will have to follow new standards (BS -VI) from 1st April, 2020. The
standards cover four and two-wheelers and commercial vehicles.
 At present, BS IV and BS III fuels are available across India.
 Due to their use, hazardous pollutants in the air are increasing leading to health
ailments like Asthma, Bronchitis, heart diseases and even cancer.
 “The adoption of the zig-zag technology in 3,000 out of 6,000 brick kilns around the
National Capital Region (NCR) has also helped in reduction of air pollution. Soon all
brick kilns will follow the suit,” he said.
 In zig-zag kilns, bricks are arranged to allow hot air to travel in a zigzag path which
results in better mixing of air and fuel, allowing complete combustion, reducing coal
consumption by about 20 per cent. Hence, all options are correct.

Q7. Shendurney Sanctuary is in-

a) Kerala
b) Goa
c) Karnataka
d) Arunachal Pradesh

Solution: a)

Explanation:
 Shendurney Wildlife Sanctuary is a protected area in the Western Ghats, India,
located in Kollam district of Kerala and comes under the control of Agasthyamalai
Biosphere Reserve.
 It was established on 25 August 1984 and comprises 172.403 square kilometres
(66.565 sq mi). The name is a corruption of the Chengurinji, a tree endemic to the
region (Gluta travancorica).

Q8. In context of Indian Biodiversity and Indian Geography, Consider the following
statements-

1. Pied Cuckoo is known for its close association with southwest monsoon.
2. The Little Bloodtail lifecycle is tied to the southwest monsoon.
3. Historically, Little Bloodtail is found in Bhutan, Myanmar, Bangladesh and North-
   East India.
   Which of the statements above is/are correct?

a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2 and 3

Solution: d)

Explanation:
 Large numbers of the dragonfly are known to emerge from the aquatic larval stage
with the first rains of June. They disappear as the southwest monsoon wanes by
September. Hence, statement 2 is correct.
 Historically, the species was known to be found in Tibet, Myanmar, Bangladesh and
northeast India, but was first spotted in the State only in 2013 at a few locations in
Kannur district. The diminutive insect measures less than 4 cm in length, and the
male is blood-red in colour with black marks. In the female of the species, the red
is replaced with yellow. The wings are transparent. Hence, statement 3 is correct.
 Pied cuckoo is known for its close association with the monsoon in India. Hence,
statement 1 is correct.
 Farmers have traditionally relied on the arrival of the pied cuckoo as a signal of
arrival of monsoon and seed sowing.

Q9. With context of Environment Conservation, consider the following statements-

1. The Central Government appoints the Director of Wildlife Preservation and assistant

directors and other officers subordinate to the Director.

2. The State Governments appoint a Chief Wildlife Warden (CWLW) who heads the
   Wildlife Wing of the department and exercises complete administrative control over
   Protected Areas (PAs) within a state.
   Which of the statements above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above

Solution: c)

Explanation:
Wildlife (Protection) Act, 1972:
The Act was enacted for the protection of plants and animal species.
 It extends to the whole of India except the State of Jammu and Kashmir.
 Prior to this legislation, India had only five designated national parks.
 At present, there are 101 National Parks in India.
Authorities Appointed under the Act:
 The Central Government appoints the Director of Wildlife Preservation and assistant
directors and other officers subordinate to the Director.
 The State Governments appoint a Chief Wildlife Warden (CWLW) who heads the
Wildlife Wing of the department and exercises complete administrative control over
Protected Areas (PAs) within a state.
 The state governments are also entitled to appoint Wildlife Wardens in each district.

Q10. Which of the following are the members of G-7 or ‘Group of Seven’ countries?

1. Canada
2. France
3. Germany
4. India
5. United States
   Select the correct answer using the code given below:

a) 1, 2, 3 and 4 only
b) 2, 3, 4 and 5 only
c) 1 and 5 only
d) 1, 2, 3 and 5 only

Solution: d)

Explanation:
 The G-7 or ‘Group of Seven’ are Canada, France, Germany, Italy, Japan, the
United Kingdom, and the United States.
 The G-7 nations meet at annual summits that are presided over by leaders of
member countries on a rotational basis. The summit is an informal gathering that
lasts two days, in which leaders of member countries discuss a wide range of global
issues.
 The G-7 does not have a formal constitution or a fixed headquarters.
 The decisions taken by leaders during annual summits are non-binding.
Timeline:
 It is an intergovernmental organization that was formed in 1975 by the top
economies of the time as an informal forum to discuss pressing world issues.
 Canada joined the group in 1976, and the European Union began attending in 1977.
 The G-7 was known as the ‘G-8’ for several years after the original seven were joined
by Russia in 1997. The Group returned to being called G-7 after Russia was expelled
as a member in 2014 following the latter’s annexation of the Crimea region of
Ukraine.

Q11. Consider the following statements:

1. Right to a fair trial originates from Article 14 of the Indian Constitution.
2. The Supreme Court in State of Punjab vs Ramdev Singh (2003) held that the name
   of the rape victim should not be mentioned in the judgments.
   Which of the statements given above is/are correct?
   a) 1 only
   b) 2 only
   c) Both 1 and 2
   d) Neither 1 nor 2

Solution: c)

Explanation:
 Right to a fair trial: Article 14 of the Indian Constitution exclusively deals with
the Right to Equality. Conducting fair trails is an important aspect of the law which
ensures equality.
 The disclosure of identity of the survivor of rape by anyone was made
punishable under a newly added Section 228-A.
 The Supreme Court in State of Punjab vs Ramdev Singh (2003) held that the
name of the victim should not be mentioned in the judgments and she should be
described as ‘victim’ in the judgment.

Q12. Consider the following statements with respect to GATI:

1. The Ministry of Education has launched GATI.
2. It is a system of grading institutes to achieve gender equity in science.
   Which of the above statements is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) None of the above

Solution: b)

Explanation:
Statement 1 is incorrect.
 The Department of Science and Technology (DST), Government of India, launched
a system of grading institutes – GATI, based on a programme started by the United
Kingdom in 2005 called the Athena SWAN, to achieve gender equity in science.
 The system of grading institutes will depend on the enrolment of women and
the advancement of the careers of women faculty and scientists.
 The concept borrows from a programme started by the United Kingdom in 2005
called the Athena SWAN (Scientific Women’s Academic Network).

Q13. With reference to gender equity, consider the following statements:

1. Gender equity in science is one of the focuses of the Draft 5th National Science,
   Technology, and Innovation Policy.
2. India is the third-worst performer in South Asia according to the World Economic
   Forum’s Global Gender Gap Report 2021.
   Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Solution: c)

Explanation:
Both statements are correct
 One of the focuses of the new Science, Technology and Innovation
Policy, currently being drafted by the Department of Science and Technology (DST),
will be to increase the participation of women in science.
 To this end, the govt. will incorporate a system of grading institutes depending on
the enrolment of women and the advancement of the careers of women faculty and
scientists.
 India has slipped 28 places to rank 140th among 156 countries in the World
Economic Forum’s Global Gender Gap Report 2021, becoming the third-worst
performer in South Asia.