G7 Nations Strike Deal to Tax Big Companies and Squeeze Havens

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Of the G seven rich gang of countries coming together for what they call a landmark deal to try to end offshore tax havens. Basically the idea being that Companies. Large companies such as Amazon, Facebook, and so on, should pay more in the countries where they do business, so they can't just say that, actually, even though they might sell in your country, they belong somewhere else because they happen to have set up shop, little brass plate in an off shore tax haven. Is it actually going to work or not? It's Going to be a subject, which has been kind of going to be argued over the claims of the rich countries. Alex Cobham is chief executive of the Tax Justice Network. He knows this stuff in depth Tax Justice Network is an advocacy group. Campaigns for tax avoidance. Can you first, just just describing a sort of a capsule form? How this plan is going to work? I'm trying to explain it in the introduction, but you're the expert making companies pay more in the countries where they do business. Is that gonna work? Yes And no. So there's two. There's two pieces here. One is the bit. That's that's kind of had more profile, I think, which is taking a small bit of the profit of more or less the 100 of the very biggest and most profitable multinationals. And saying, Okay, A bit of that above the 10% profit margins are above a very high margin is going to be taxed in the place where you make your sales regardless of whether you managed to get your profit somewhere else, But that's going to bring in the TV thinks between five and $12 billion a year of additional revenue. So it's not nothing, but it's not really very much. The other part is actually a big deal. And this is a global minimum tax rate. That's the idea that all of the biggest multinationals, perhaps eight, or 10,000, Will have to pay in every country at least 15%, and that's potentially dramatic that could bring in between about 275 and $460 billion in additional revenues each

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