“We had to end the tax evasion tap,” analyst Fareed Thoubal analyzes

"We had to end the tax evasion tap," analyst Fareed Thoubal analyzes

Dauphine, Professor of Economics in Paris, Fareed Thoubal analyzes France, Agreement signed on Friday 136 Countries including Ireland and Hungary impose a 15% lower tax on multinational companies.

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Welcome to the Organization for Economic Co-operation and Development (OECD) “Important Decision” Following the agreement signed by 136 countries on Friday, October 8th who “15% lower tax rate for multinational companies from 2023”, She said in a press release.

Fareed Thoubal, P.S.Professor of Economics in Paris – Dofin, Scientific Adviser at the Center for Prospective Studies and International Information (CEPII), talking about a “Greetings Reform” The car “It was necessary to tap off the tax exemption of multinational companies”, He says, stop transferring profits to tax centers. So this international agreement is a good start. Without this modification, “Each country would have its own, unilateral tax system.” Notes the economist, Companies lose visibility when it comes to taxation.

But can we do more? Yes, estimate Fareed Thoubal, argues The 21% tax, especially demanded by the Biden Presidency, will be levied more on small companies to avoid tax distortions. A 21% tax would have enabled the various states to generate more revenue. In addition, the proceeds will go to the country where the multinational company is headquartered, which disturbs developing countries.

According to a study by the Economic Analysis Council attended by Farid Thoubal, 15% of the tax should be brought to France for 6 6 billion a year. It remains to be seen whether multinational companies will comply with these new rules. “We can establish a whole range of laws to prevent abuse, for example, preventing a company from converting its head office into a tax haven.”, Highlighted Fareed Thoubal.

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