‘Far too low’: Tax justice campaigners push back against the G7’s 15% minimum tax-rate pact

‘Far too low’: Tax justice campaigners push back against the G7’s 15% minimum tax-rate pact Hello people in the world, today Random Find Truth will provide information about the correctness and important updated opinions that you must read with the title ‘Far too low’: Tax justice campaigners push back against the G7’s 15% minimum tax-rate pact that has been Random Find Truth analysis, search and prepare well for you to read all. Hopefully information from Random Find Truth about Articles Prophecy, the Random Find Truth write you can make us all human beings who are knowledgeable and blessed for all.

Title : ‘Far too low’: Tax justice campaigners push back against the G7’s 15% minimum tax-rate pact
Link : ‘Far too low’: Tax justice campaigners push back against the G7’s 15% minimum tax-rate pact

The world’s richest countries have finally agreed in principle to the idea of a global minimum corporate tax rate—a step that could signal a conclusion to a debate that has been raging for nearly a decade.

However, there’s a problem: According to tax justice campaigners, the agreed upon 15% minimum is too minimal, and the mechanism for distributing extra tax revenues would be unfair to the countries that aren’t the richest.

“Fixing a global minimum corporate tax rate of just 15% is far too low,” said Gabriela Bucher, Oxfam International’s executive director, when the finance ministers of the G7 club—the U.S., the U.K., Japan, Canada, France, Germany, and Italy—announced their agreement on Saturday. “It will do little to end the damaging race to the bottom on corporate tax and curtail the widespread use of tax havens.”

Those are indeed the objectives of the move. At the moment, multinationals get to shift their profits to low- or no-tax locales through artificial arrangements such as one part of the company paying another for the use of certain intellectual property.

In the European context, for example, a Big Tech firm might make some money from serving a customer in Belgium, where the corporate tax rate is 25%, but pay no or little Belgian tax on the profits, instead funneling them through a subsidiary in a country like Ireland (which currently has a 12.5% corporate tax rate) or Luxembourg (17%). Or much of the money could end up in no-tax country such as Bermuda—which is what Google, whose European headquarters is in Ireland, did until last year. READ MORE