Economist and member of the group of 20 in Tor Vergata: The right to tax profits from abroad without blaming only the giants of the network. A global tax agreement would corner tax sites like Ireland, and those who did not would face fines.
Tax time in globe format. The Rapid American Change to Global Corporate Profit Taxes (The Low corporate tax) Created abroad (here is an interview with the former finance minister, Vincenzo Visco) Seems to have paved the way for global financial reorganization. Relaunch first through US Treasury Secretary, Janet Yellen, An OECD-style proposal, or a levy (estimated at 21%) on the profits of multinational companies built outside their home country. International Monetary Fund invites world governments to tax large assets.
In the middle, Amazon’s OK, its founder, Jeff Bezos The richest man in the world on request Joe Biden The U.S. giants are aiming to pay more taxes to fund the White House’s pandemic plans and, above all, web tax. Corporate tax on the profits of large web companies, which can eventually be hidden Minimum tax Yellen relaunched. All of this will lead to the end of unquestioned tax havens, which steal $ 26 billion a year from Italy alone. (Ireland’s GDP increased by 32% in 5 years due to the introduction of subsidy taxes). Formiche.net He talked to an economist Giampolo Gully, A member of Group 20 of the Tor Vergata Economic Foundation.
Galli, Treasury Secretary Yellen re-launched an OECD proposal, or lower global tax on corporate profits generated abroad. How would you classify this proposal based on qualifications? Is this merely ideological or a modern approach to a question that has not yet been resolved?
This is not an ideology, but a very important suggestion. This is one of the proposals put forward by the OECD for some time, and I think if there is an agreement between the big countries it will be one of the most difficult to implement. This was a radical change from the previous US administration, which hampered the possibility of a deal. Then, of course, the details will be inevitable.
What do you mean?
If the tax is 10% it will not make a big difference and if it is 20% the change will be significant. While a country may have a high rate, we also have to worry about how the tax base is defined because it has a sifted tax base. However, today we notice an important step.
One of the goals of this proposal is to end the existence of tax havens such as Ireland, or at least seize them, and increase GDP by 32% in 5 years from the introduction of the priority tax. Do you think this will work?
I also don’t know if Ireland owes only a small amount of tax, however, no matter how true this is, growth has been stolen from other countries. Ireland will have to adapt. In addition, the agreement must provide some means of levying fines on companies based on tax bases or in countries with very low taxes.
Europe has sometimes faced the Irish problem …
Europe can impose nothing on Ireland because tax matters are not the ability of the union and are therefore decided unanimously. But under an international agreement, Ireland will have to fight all major powers, including the United States.
Another global tax web tax that is being discussed and will soon see the light of day. Do you see any kind of overlap between profit tax and web tax? If so, what are the points of integration?
I think there is a Yellen proposal to replace web tax. Moreover, even the European Commission has never believed in home-made web tax. The tax on the table – the so-called digital service tax – is fundamentally non-applicable and has been interpreted as a way to put pressure on the United States. As many have repeated in recent years, the main road is the international agreement to impose taxes on all multi-localized companies without targeting a particular sector. The goal is very close to the position of the Biden administration.