Posted on 10/08/2021 10:36:05 AM PDT by SJackson
London (CNN Business)A group of 136 countries have agreed to a global treaty that would tax large multinationals at a minimum rate of 15% and require companies to pay taxes in the countries where they do business.
Estonia, Hungary and -- most notably -- Ireland joined the agreement Thursday. It is now supported by all nations in the Organization for Economic Cooperation and Development and the G20. The countries that signed on to the international treaty represent more than 90% of global GDP. Four countries that participated in the talks -- Kenya, Nigeria, Pakistan and Sri Lanka -- have not yet joined the agreement.
The Biden administration breathed new life into the global initiative earlier this year and secured the support of the G7 countries in June, paving the way for a preliminary deal in July.
Ireland, which had declined to join the initial agreement in July, has a corporate tax rate of 12.5% — a major factor in persuading companies such as Facebook (FB), Apple (AAPL) and Google (GOOGL) to locate their European headquarters in the country.
"Today's agreement will make our international tax arrangements fairer and work better," said OECD Secretary-General Mathias Cormann in a statement. "This is a major victory for effective and balanced multilateralism."
(Excerpt) Read more at cnn.com ...
> a global treaty that would tax large multinationals at a minimum rate of 15% <
How in the world will that be verified?
Red China: Yes, all of our companies are now abiding by the treaty.
UN official: I’d like to see the evidence, please.
Red China: You’ll just have to take our word on that.
And the same goes for India, except that they might produce fake receipts just to keep everyone happy.
It's just a minimum. He'll still go for the higher rate.
I wonder what tactics were used to twist Irelands arm to join in.
How in the world will that be verified? Red China: Yes, all of our companies are now abiding by the treaty. UN official: I’d like to see the evidence, please. Red China: You’ll just have to take our word on that. And the same goes for India, except that they might produce fake receipts just to keep everyone happy.
That's not even the half of it. Imagine the accounting difficulty and the opportunities to cheat that will come with translating a VAT style tax into a flat rate.
Ok so we treat this treat like a real treaty and require 66 votes in the Senate. Or do the republicans buckle like they did on the Iranian nuclear treat and agree to unconstitutionally approve it by majority vote?
Ireland,once a proud and decent country,is now nothing more than a tawdry little European cesspool. They'll do whatever their masters in Brussels (read:Berlin) tell them to do. It was a certain East German hausfrau who issued the instructions.
I just thought about something else. What about legal deductions? Does a company pay 15% on the gross, or on the net after all the deductions? As you noted, this will be an accounting nightmare.
And here’s the thing. Only the woke Western nations will be honest about all this. Everyone else will manipulate the system for their own economic advantage.
I know it’s all big tech, and they’re all in on globalism so it won’t happen, but it would make me QUITE happy if all the companies that set up offices in Ireland were to suddenly close them now, and move all operations out. Let them reap what they have sown.
And just like that, everything just got that much more expensive to every consumer worldwide, on top of all the raw materials scarcity, production slowdowns due to people not working due to ‘covid’, transportation scarcity and inflationary money policy out of D.C.
Oh, that 15% will be on top of whatever the US Government levies if we were to sign on.
Can Biden get 67 votes in the Senate to approve this treaty? If not, the next President can simply withdraw from the agreement.
That’s ON TOP of those.
Corporations do not pay taxes
Total _ing bull-stuff!
On top of inflation headed out of control, now everything
from a corporate source is going up 15%.
Trump would never have signed onto this.
Ireland joins in.....
New Irish blessing....
May runaway inflation rise up to meet you. May the government tax agents be always at your back. May the global climate changed sun shine warm upon your face....
Yeah, just like OPEC; set rates and then circumvent them. Corporations will have a bogus rate because they’ll then subtract all the write-offs. Math is hard.
TARIFFS.
Golf memberships? That isn't compensation, just part of keeping your key workers happy.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.