Rising focus on stopping corporate tax avoidanceApril 2021
Governments around the world are increasing focus on stopping corporations from avoiding taxes.
Earlier this month US Treasury Secretary Janet Yellen proposed a global minimum tax on corporations, reported The Economist. That would require historic collaboration between governments in order to stop countries from lowering taxes to zero.
Across the Atlantic, the European Union has earlier disclosed plans to require corporations disclose a breakdown of how much taxes the pay in each country.
Multinational corporations avoid paying billions in taxes in part by moving their money around to countries that are so-called tax havens and levy zero taxes, as reported by the International Consortium of Investigative Journalists.
This means corporations avoid paying gigantic amounts of tax income that governments could have used to improve services at hospitals and schools, for example.