If you follow the exciting news from fiscal world, probably know that Apple gives its wheels to lower tax payments around the world. In Europe, for example, Ma redirects all its profits to its Irish branch, where it benefits from a very good tax benefit granted there in the 1990s (which has already rendered problems for both the country and the company, incidentally).
This strategy strategy, however, may soon be over. As reported to Reuters, a OECD (Organization for Economic Co-operation and Development) is under discussion to propose a reform in the tax payment rules of multinationals such as Apple, which effectively prevent this kind of financial relocation.
If the proposal is effective, the habit of redirecting profits to less taxing countries will be prohibited: companies will have to pay taxes in each country where they operate, commensurate with their revenues in each territory. According to the OECD, the current model dating from the 1920s is no less outdated, causing tensions in international relations and could lead to major problems if left unchanged. According to the organization:
Current rules, which have been around since the 1920s, are no longer sufficient to ensure a fair allocation of tax rights in an increasingly globalized world.
More precisely, if the proposal is approved, countries will have two new tax rights. The first allows territories to collect taxes from multinationals based directly on the revenue generated by companies within the country; The second, designed for emerging countries, allows them to collect taxes from companies that do not have a physical presence in the territory, but sell their products there, so they would be directed to companies' distribution activities.
The change would be particularly significant for the technology giants (Apple, Google, Amazon, Microsoft, Facebook, Netflix and others), because they are the category of multinationals that use the strategy of reallocating profits most naturally from their line of work, which in many cases does not have a specific place of operation and generates much of their revenue in their own right. Internet.
The countries most benefited from the change would be the great powers and underdeveloped territories; On the other hand, taxpayers and countries with a tradition of granting tax benefits to companies (such as Ireland, which we cited above) would be impacted on their respective economies. These are details that the OECD will need to consider in the coming months when trying to convince the participating territories of the organization to buy their idea.
The OECD proposal will generate at least consensus among G20 countries around the proposal by January 2020; From there, the organization will work on the details of the new rules.