Taxing multinationals

Govt must protect revenues under the new tax deal

After several years of negotiations, 136 countries, representing over 90 per cent of global output, finalised the agreement last week to tax multinational corporations. Since almost all members of the Organisation for Economic Cooperation and Development’s (OECD’s) framework on base erosion and profit shifting have agreed, tax avoidance for multinational corporations would become difficult once it’s implemented. The two-pillar tax solution will now be presented before the finance ministers of the G20 countries this week and later at the G20 leaders’ summit. A global agreement on taxing multinational corporations had become necessary because of a variety of reasons. With the