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https://theconversation.com/why-taxing-the-worlds-biggest-companies-at-15-wont-fix-the-gaping-hole-in-global-tax-rules-206400>
"Australia’s federal government has a plan to discourage companies from
shifting profits to tax havens. The idea is to impose a “global minimum tax” on
large Australian and foreign-owned companies with subsidiaries in low or no-tax
countries.
Australia’s largest mining companies are notorious for shifting profits to
avoid the 30% company tax rate. It is common to use marketing hubs in
Singapore, where the headline tax rate is 17% but various incentives often
lower the effective rate to about 5%. Paying Singaporean subsidiaries for
“services” performed, such as marketing or to use trademarks or patents owned
by the group, can reduce a company’s Australian profits, and its tax bill.
The Albanese governent’s proposal, announced in the federal budget, embraces an
OECD/G20 program to reduce profit shifting by multinationals through a uniform
global 15% tax on all companies. Almost 140 countries have agreed to implement
the tax, though to date only a handful have enacted it."
Cheers,
*** Xanni ***
