By Stephen Gardner
An influential EU panel has suggested using a mechanism designed to combat harmful tax practices to push EU member states into accepting a global minimum tax rate. Over 130 countries have agreed on a global minimum tax rate of “at least 15%" but four EU countries—Cyprus, Estonia, Hungary, and Ireland—have not signed up to the agreement, which was negotiated through the Organization for Economic Cooperation and Development.
By Jefferson VanderWolk
On July 1, 2021, the OECD-led Inclusive Framework on BEPS announced that 130 countries had agreed on revised outlines of a two-pillar plan calling in part for a reallocation of taxing rights regarding certain large multinational businesses. The author discusses the proposed reallocation in light of the U.S. Trade Representative’s recent reports on digital services taxes.
By Peter Flanagan
Bigger countries are using negotiations on global corporation tax reform to increase their own tax revenue at the expense of smaller nations, Ireland’s deputy prime minister said. “This isn’t just about tax justice and big companies paying their fair share,” Leo Varadkar told reporters in Dublin. “This is also about big countries trying to get a bigger share of the pie.”