A global tax deal for the rich, not the poor, - Project Sindicat.
The first concern regarding the G-7 deal is that the proposed minimum tax rate of 15 per cent is low, close to the rates in tax havens like Switzerland and Ireland. This reflects a preference by several G-7 countries to protect their own multinationals rather than follow the lead of US President Joe Biden’s administration, which had initially called for a global minimum rate of 21 per cent.
Moreover, under the current proposal, the majority of the additional tax revenues will go to multinationals’ home countries, not to the so-called source countries where these firms generate profits. Unsurprisingly, G-24 members want source countries to have priority in applying the minimum tax, particularly in respect of payment of services and capital gains, in order to protect their tax base. Giving priority to global corporations’ home countries will reinforce rather than alleviate the unfairness already built into the current international tax system.
The second part of the G-7 agreement introduces a formula to apportion multinational companies’ global profits for tax purposes. But the proposal would apply only to the largest firms with global profit margins of at least 10 per cent. And at least 20 per cent of their so-called “residual” profit exceeding this threshold would be subject to tax in the countries where it is generated.
Although this new rule would affect US tech giants like Apple, Facebook, and Google, it may end up being applied to only a tiny fraction of the global profits of 100 or so of the largest multinationals. This means that the measure will generate little additional revenue, perhaps less than $10 billion globally per year.
The G-24 has demanded a bigger reallocation of global profits, with the reallocation percentage ranging from 30 per cent up to 50 per cent for the most profitable firms. Likewise, the ATAF has asked for the rules to apply to all multinationals with annual revenues above 250 million euros, much lower than the G-7 proposed threshold of $10 billion, and argues that a percentage of all global profits, whether routine or residual, should be apportioned to the countries where these companies do business.
Global tax deal eventually emerges should reflect the interests of the world — including the developing countries — and not just those of seven large, developed economies. The developing world relies more heavily on corporate tax revenue and has thus been hit harder by multinationals’ tax avoidance, which results in global revenue losses of at least $240 billion each year.
Many developing economies — and low-income countries in particular — are not even taking part in the negotiations on the wider OECD/G-20 Inclusive Framework.
В тему. Global tax. Потери для мировой экономики: https://igor-tiger.livejournal.com/2596950.html
В тему. Global tax. Три предостережения Европы: https://igor-tiger.livejournal.com/2597708.html
В тему. Global tax. Предостережение США: https://igor-tiger.livejournal.com/2597960.html
В тему. Global tax. Угрозы роста бедности: https://igor-tiger.livejournal.com/2598781.html
В тему. Global tax. Налоговые переводы становятся непривлекательными: https://igor-tiger.livejournal.com/2599138.html
В тему. Global tax. Японская прокрутка: https://igor-tiger.livejournal.com/2599310.html
В тему. Global tax. Позиция Сингапура: https://igor-tiger.livejournal.com/2604149.html