“A sweeping overhaul of international corporate tax rules is urgently needed to stop savvy big companies escaping the payment of billions of euros to cash-strapped governments, the OECD said on Tuesday,” Leigh Thomas reports for Reuters.
“Governments face a growing outcry from voters to force big companies with extensive international business to pay more tax in wake of mounting evidence that many use differences between different countries’ rules to reduce their tax bill,” Thomas reports. “The Paris-based Organisation for Economic Cooperation and Development said multinational companies were increasingly reporting profits in different countries from where their revenues were generated to avoid taxes.”
Thomas reports, “British lawmakers are mulling changing the law following revelations about how companies such as Starbucks, Apple, Google and Amazon use complex inter-company transactions to cut their tax bills… France is also studying new ways to collect more tax from global internet companies, which often serve consumers in high-tax countries with subsidiaries in low-tax jurisdictions in order to reduce what they owe to governments.”
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MacDailyNews Take: Beware unintended consequences.
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