International tax: Pillars of strength or ruins in the making?
Source: Taxation In Australia Journal Article
Published Date: 1 Feb 2020
The taxation of multinational corporations is undergoing a paradigm shift in Australia and around the world. Taxing multinationals appears to be a win"win for governments: it satisfies voter concern that multinationals aren't paying their fair share, it isn't as politically fraught as increasing the taxes (directly) paid by said voters, and it raises much-needed revenue. The main risk is capital flight, but this is minimised where countries act together. To this end, in addition to Australia's recent unilateral and multilateral measures (the multinational anti-avoidance law and diverted profits tax, and the anti-hybrid rules, the multilateral instrument and country-by-country reporting, respectively), Australia and the 134 other countries in the Inclusive Framework of the Organisation for Economic Cooperation and Development are currently considering an ambitious plan to harmonise and increase the taxation of multinationals " the two pillars plan. This article examines the plan and makes predictions about its future.
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Details
- Published By: Chloe Burnett ATI
- Published On:1 Feb 2020
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