Taxing Times for Robots ?

CNBC.com ( 17 Feb 2017 ) carries following news report  :

Bill Gates: Job-stealing robots should pay income taxes “

 

CPAs of the world, take note of a whole new potential client base: According to Bill Gates, if a robot is going to do a human's job, it should also pay a person's income taxes.

"If a human worker does $50,000 of work in a factory, that income is taxed," says Gates in a recent interview with Quartz editor-in-chief Kevin Delaney. "If a robot comes in to do the same thing, you'd think we'd tax the robot at a similar level."

Gates is actually optimistic about the prospect of a workforce made up significantly of robots and, in the interview, he emphasizes the jobs humans will still, and always, be needed to do.

Still, tax revenue is essential to making training and new, irreplaceable jobs available to human workers.

"You can't just give up that income tax," he says. "Some of it can come on the profits that are generated by the labor-saving efficiency there. Some of it can come directly from some type of robot tax."

And the companies making money building this robot workforce ?

Gates speculates they'll be just fine with the idea of a robo-worker that's required to pay its due.

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Now , Bill , being a pragmatist , could not mean this seriously !

He is too intelligent to have overlooked the following :

·         When one salaried worker gets replaced by another salaried worker, computation of taxes payable by the employer, is a straight forward matter .

·         But who is expert enough to decide how many salaried workers , does a robot replace ?  It could be just ONE or even THREE , at another point of time  !  Scope for endless litigation !

·         Most factory workers possess ONE skill ( eg: welding / machining / fabrication / painting / assembling etc )

But , more often than not , one Robot possesses many skills simultaneously and replaces many workers , at one go ( - and no issues of line-balancing / coordination / coffee breaks / leaves / sicknesses etc disrupting the team ! )

·         Even if employers have to pay taxes ( of course , on behalf of the robots ! ) , they would be more than happy to do so ( - and replace human workers )

Reason ?

A Robot ,

{ https://myblogepage.blogspot.com/2016/04/robots-robots-everywhere-not-soul-to-see.html },

·         works 24 hours/day and does not ask for a salary / increment / bonus

·         does not " go slow "or go on a strike

·         does not demand " Quotas / Reservations "

·         does not take holidays or take " Sick Leave "

·         does not resign / demand promotion

·         neither envies other robots nor sabotage their output

·         does not complain against unpleasant work

·         does not get tired and need rest

·         does not slow down after working for 8 hours

·         does not demand " Overtime Pay " @ 200 % of normal

·         perfectly co-ordinates its tasks with other robots

·         willingly " retires / gets replaced " at any age , whenever required

·         is easy to “ Re-Skill / Re-program “ , within hours

·         does not demand Unemployment / Retirement Benefits  ( PF / Gratuity etc )

THAT BRINGS UP THE QUESTIONS :

·          What is a robot ? Does it always have moving parts and be present at the place of work ?

·          Does it have to have  any “ Human-like “ attributes ?  eg : Walk/ Talk / Cry / Laugh  ?

·          Can it “ reproduce “ itself ?

·          Can it , one day become “ smarter “ than a human ? (Ray Kurzweil’s frightening “ Singularity)

·          Can humans using VR - AR headsets / Hepatic Gloves and operating machineries –     equipment – devices from thousands of kilometres away, be called “ Robots “ ? Eg :

#    A boy from Kolhapur loading / unloading in a Amazon Warehouse in New York

#   A girl from Nashik operating exoskeleton in Detroit , to help an old man out of bed ?

#   A eye surgeon in Mumbai removing a cataract in LA , using micro-surgery robot ?

{ refer : The BackFactory of the World :

{  https://myblogepage.blogspot.com/2015/09/back-factory-of-world.html  }

And when ( not “ if “ ) that SINGULARITY arrives , do not be surprised if the robots have become smarter than the smartest human CPA / CA / Tax Consultant , to train their MASTERS / OWNERS / EMPLOYERS , on how to “ EVADE PAYING TAXES “ !

Or, claim to have their “ Substantial Presence “ in countries with no taxes of any kind !

Dear Bill :

Unless you are comfortable with the emergence of a world-encompassing BLACK ECONOMY , parish the idea of taxing the robots !

02  March 2017

www.hemenparekh.in / blogs

Congratulations , Shri Ajoy Mehta !

Congratulations , Shri  Ajoy  Mehta  !

And thank you for considering “ Self Certification / Declaration / Undertaking “ by builders , as suggested in my following email to you / Shri Devendra Fadnavis ( 03 Jan 2016 )

A news report in Mumbai Mirror ( 28 Feb 2017 ) reads:

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“ The draft policy , which now awaits only Municipal Commissioner Ajoy Mehta’s approval says that architects will submit online applications for seeking OCs

The architects will have to inspect the buildings under their care in accordance to the approved plans and submit a certificate stating that the structures have been completed as per approved plans

The architects will also have to submit a list of variations or discrepancies thereof

The new policy will make it mandatory for the architect to upload video clips along with photographs of the entire building “

The report quotes you :

“ The whole idea is to smoothen and speed up the process of granting an OC . Thi is part of our ease of doing business initiative “

My Email dt 03 Jan 2016, to Shri Ajoy Mehta / Shri Devendra Fadnavis :

Dear  Change Agents :

Just read about Maharashtra Government announcement re reduction of Building Approvals from 119 to 58

And granting these approvals within 60 days instead of current ONE YEAR  !

Congratulations  !

I hope , someday soon , this will lead to implementation of my following suggestion

When implemented , it will serve as THE  BENCHMARK , for all the other State Governments

Wednesday, 4 November 2015

 

SELF CERTIFICATION FOR BUILDERS ?

 

 

In Hindustan Times ( Oct 29 ) , Moushumi Das Gupta writes :

Govt to streamline rules for Construction Projects

Currently , a builder requires as many as 34 kinds of permits from two dozen Ministries, before starting construction

This process takes up to 3 years

Now, Central Govt has initiated a process to streamline the approvals required to ensure that builders get all the construction permits within 60 days

Eg:

*    Built up Area............. Environment Ministry

*    Height Restriction...... .Civil Aviation Ministry

Cabinet Secretary has directed all the Ministries to come out with notifications by end Dec 2015

The Centre has decided to empower Municipalities to grant all construction related approvals , based on these notifications

One would be able to get all approvals from under one roof , which in this case , would be the Municipal Corporation's office

Although a very laudable initiative , I believe there is tremendous scope to further streamline and digitize this approval process, in the nature of

E-Delivery of Services to Construction Industry

Here is how :

*  All builders / developers must register on Municipal Web sites and obtain

   unique BUILDER REGISTRATION NUMBER

*  Builders must fill in online, on web site of concerned Municipality, a form :

    BUILDING  PERMIT  APPLICATION

*  Building Permit Application Form will have a STANDARD FORMAT , into

    which applicant will need to submit exhaustive details re the project

    This will include detailed Floor Plans and Structural Drawings , along with

    names / contact details of Architects / Structural Engineers etc

    The FORM will require slab-casting dates for each slab and the final

    completion date when builder will apply for Occupation Certificate

   

*  The Form will have a section called

    SELF   CERTIFICATION   /  DECLARATION

    Builder would be required to tick YES / NO against each item as shown :

    Does your proposed Building / Structure / Project , satisfy the criteria /

    notifications / regulations , issued by the concerned Ministries in respect

    of :

    #   Built-up Area........... ( YES ) / ( NO )

    #   Height Restriction

    #   Fire Fighting

    #   Water Harvesting

    #   Roof-top Solar Power

    #   Effluent Treatment

    #   Garbage Disposal

    #   Earthquake Resistant Structural Design..............etc

Clicking on each item will reveal the relevant " Notification / Regulation " issued by the concerned Ministry

To make the process absolutely fool-proof , the form will insist on an " Electronic Signature " of the applicant

DECLARATION / UNDERTAKING :

" I declare that I have read each and every notification / regulation , listed   in respect of items mentioned above

I further declare that I explicitly agree to abide by these regulations

I am aware that Occupation Certificate will not be granted if my completed project is found to be in violation of any of these notifications / regulations

I will not allow any person / entity to occupy any part of this premises , until and unless , Municipality issues to me , the Occupation Certificate

If Municipality finds any violations , I agree to rectify the same before applying for a fresh Occupation Certificate

IF MUNICIPALITY IS NOT IN A POSITION TO ISSUE OCCUPATION CERTIFICATE DUE TO ANY

VIOLATIONS WHICH SIMPLY CANNOT BE RECTIFIED , THEN I WILL DEMOLISH THE SAID BUILDING / PROJECT / STRUCTURE  ON MY OWN AND BEFORE SUCH DEMOLITION , REFUND WITH INTEREST , PAYMENTS COLLECTED FROM THE BUYERS

The plot of land is free from any encumbrances / litigations

I am not in default of any loans taken from any bank / individuals

I will not accept any payment in cash , nor make cash payments

I absolve the Municipal Corporation of any liability arising out of non completion of my project 

I agree that my Building Permit Application and my Registration Application details , be made accessible to public on your web site , along with full details of my past / current projects and full details of my balance sheet / bank borrowings  " 

GRANT OF APPROVALS BY MINISTRIES :

As soon as the builder submits the online BUILDING PERMIT APPLICATION , it automatically and instantly , appears on the web sites of ALL the concerned Ministries

The concerned officer of each Ministry , makes APPROVED / REJECTED entries in the application form , from the backend

If rejected , he will provide the reasons

Ministry officers are required to carry out this entry , within 24 hours

As soon as an officer of any Ministry makes entry and SUBMITS , the application forms on web sites of ALL Ministries and web site of the concerned Municipality , get updated simultaneously and instantly , making for MIRROR IMAGES at all times

As soon as any entry is made , a copy gets emailed to the applicant builder

Any " editing " of the application form by the builder , will start the entire process , all over

Applicant builder will be obliged to display the latest emailed form at the site

The database so created on web sites of ALL Ministries - and concerned Municipality - will be searchable State-wise / City-wise

CHANGES  IN  RELEVANT  LAWS :

To speed up any litigation between the parties concerned ( Builder / Buyers / Central & State Govts / Municipality / Bankers etc ) , existing laws may be changed

IMPORTANT :

Every application must be in the open domain and visible to anyone , online and transparently

There should be provision for any visitor of the web site to report any abuse / violation of regulations or any objection to the proposed construction

ADVANTAGES :

If such  SELF CERTIFICATION  process is implemented , it should be possible for India to beat Singapore , where getting 11 approval takes only 26 days !

It would be ZERO days in our case !

Now couple this with abolition of Corporate Income Tax for Construction Industry for the next 10 years and witness a MIRACLE

Then only it would become possible for achieving the following targets set by different States / Centre , under HOUSING  FOR  ALL:

*  Maharashtra...........  5 lakh      ( By 2020 )

*  Gujarat................... 50 lakh    ( 2013 - 2018 )

*  Centre.................... 220 lakh   ( by 2022 )

Also imagine :

*   Employment it would generate

*   FDI it would bring in

*   Our rank in EASE OF DOING BUSINESS

Need of the hour is :

*   Come out of " Analysis Paralysis "

*   Get rid of historical baggage

*   Break free from the legacy of the past

*   Think " Out of Box "

*   Take risk without worrying about possible failure

*   Make Course-Corrections , as you learn what mistakes got made

 hemen  parekh  /  05  Nov  2015

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01    March  2017

www.hemenparekh.in / blogs

Writing on the Wall ?

DNA ( 26 Feb 2017 ) carries following news :

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“ AI steals code from other programmes “

As each day passes by, Artificial Intelligence is getting smarter. A new AI program has now gained the ability to write its own code.

The AI program, which is built by Microsoft and Cambridge University researchers, is able to solve programming problems — BY STEALING CODE FROM OTHER PROGRAMS. The system called DeepCoder, has the ability to solve basic programming challenges by PLAGIARIZING BITS OF CODE FROM OTHER EXISTING SOFTWARE.

To solve these programming problems, and write code, the machine uses a technique known as program synthesis - can be used TO AUTOMATE THE TEDIOUS PART OF CODE DEVELOPMENT AND LET THE DEVELOPERS FOCUS ON COMPLEX TASKS.

The most wonderful outcome of this machine is that IT WILL GIVE PEOPLE THE ABILITY TO BUILD PROGRAMS, WITHOUT KNOWING HOW TO CODE. Reported by New Scientist, the system is said to TAKE LINES OF CODE FROM EXISTING PROGRAMS AND COMBINING THEM RESPECTIVELY.

This neural network can also take design clues and develop a program after harvesting appropriate lines of code from a massive code database using machine learning. It is said to analyze which lines would be the best fit and writes a working code, in just a few seconds. At the moment, DeepCoder is only capable of solving programming challenges that involve around five lines of code.

Building an AI which is capable of such intense coding could soon, revolutionize the development of computer programs.

If DeepCoder AI System “ will give people the ability to build programs, without knowing how to code “ ,  what could be the implications for the Indian IT industry , which :

·         Employs 3.5 million persons in India ( mostly , software developers )

·         Deploys 3 lakh developers in USA ( on H1 B visa )  ?

India became a “ Software Superpower “ on the back of the “ grunt work “ by these millions

What happens when AI ( DeepCoder ) takes over that work ?

Can we become “ Software Superfluous “ ?

Shall we treat the emergence of  DeepCoder , a threat or an opportunity ?

There is no way , we can stop the march of AI , which is accelerating by the day !

There is only one way

If we cannot lick them , we must join them  !

By becoming :

TheBack Factory of the World

{ https://myblogepage.blogspot.com/2015/09/back-factory-of-world.html }

But that is possible only if the government ,

Gets  Out of  the  Way

{ https://myblogepage.blogspot.com/2017/02/here-is-clue-get-out-of-their-way.html }

THE  WRITING  IS  ON THE  WALL  !

28  Feb  2017

www.hemenparekh.in / blogs