Aspects of the global tax reform agreement which have largely gone unnoticed are likely to come in for closer scrutiny in national parliaments of EU countries and in the European Parliament where some pushback can be expected, writes Dick Roche.
More than 100 countries agreed on Friday (8 October) a reform of the international tax regime intended to make it fit for the digital age and respond to longstanding concerns about corporate tax evasion.
Ireland dropped its opposition to an overhaul of global corporate tax rules on Thursday (7 October), agreeing to give up its prized 12.5% tax for large multinationals in a major boost to efforts to impose a minimum rate worldwide.
One of the more intriguing aspects of the negotiations on the OECD proposals to reform international corporate tax rules, which come up for decision this month, is the role played by the Biden administration, writes Dick Roche.
US Treasury Secretary Janet Yellen urged Paschal Donohoe, the finance minister of Ireland, to take a "once in a generation opportunity" for a global deal that would stop a race to the bottom on corporate tax rates, the Treasury said.
On global tax reform, the key question is whether US President Joe Biden will be able to persuade Congress to support the changes needed to implement a global plan to tax multinationals more fairly, writes Dick Roche.
Ireland will not support global tax reform plans, Finance Minister Paschal Donohoe insisted Thursday (15 July), entrenching its hold-out position as momentum builds for a deal meant to ensure multinationals pay a fair share.
G20 finance ministers meeting in Venice on Friday and Saturday (9-10 July) could rally the world's top economies behind a global plan to tax multinationals more fairly, already hashed out among 130 countries representing 90% of world output.
A total of 130 countries have agreed a global tax reform ensuring that multinationals pay their fair share wherever they operate, the OECD said on Thursday (1 July), but some EU states refused to sign up.