Curbing tax avoidance by multinational companies

  • 📰 CTVNews
  • ⏱ Reading Time:
  • 48 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 99%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

How can governments keep multinational companies from avoiding taxes by shifting their profits to low-tax countries? For nearly a decade, nations have grappled with that question, seeking to deter companies from legally avoiding tax by resorting to so-called tax havens.

FRANKFURT, GERMANY -- How can governments keep multinational companies from avoiding taxes by shifting their profits to low-tax countries?

That, at least, is the goal set by the Organization for Economic Cooperation and Development in Paris, which is overseeing talks among more than 140 countries. Doing so would put a floor under corporate taxation worldwide. It would remove the incentive for companies to shift profits to low-tax countries, so the thinking goes, because if those companies escaped tax abroad, they would have to pay it at home anyway. An agreed global minimum would also weaken the motivation for countries to enact low tax rates to attract companies in the first place.

In 2000-2018, U.S. companies booked half of all foreign profits in just seven low-tax jurisdictions: Bermuda, the Cayman Islands, Ireland, Luxembourg, the Netherlands, Singapore and Switzerland. Though small countries levy a low rate, they may capture what is for them significant revenue. The practice costs the U.S. Treasury around $100 billion in lost revenue annually.Several ways.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Excerpt: 'In 2000-2018, U.S. companies booked half of all foreign profits in just seven low-tax jurisdictions...The practice costs the U.S. Treasury around $100 billion in lost revenue annually.'

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 1. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines