The European Treasury, individually as member States or collectively as Union, has so far reached – with a race to the bottom – as many as 72 agreements with large global companies.
Tax competition is still very strong and active. Just think of the US corporate tax that – following the latest reforms – has decreased to a maximum 26% rate, more than one third less than the previous rate, with a US average corporate tax rate which is now below all OECD and G7 levels. Similar approaches, however, are developing in Argentina, Colombia, Luxembourg, Canada and even Japan.
Conversely corporate taxes have increased in Turkey, Portugal and Taiwan, with further increases – albeit slight – also in India. They are selective increases to favour some foreign or national companies compared to others.
At world level we now have as many as eleven jurisdictions – which account for 27% of the total corporate taxes in the world – that are currently increasing corporate taxes, while all the other small and large countries will keep on competing fiercely at tax level with their neighbouring countries.
In short, technology has made all the old tax strategies obsolete. Continue reading “The Google Tax – Giancarlo Elia Valori”