The Guardian view on global corporate tax: a $500bn prize that states must seize | Editorial
📰 source: theguardian_business · 📚 research
a new tax justice network report says governments can capture an extra $500bn a year without raising corporate tax rates, by taxing multinational profits where real activity happens instead of where they book them. un talks on a fiscal framework convention open in new york on monday, aiming for agreement by late 2027. the us walked out last year but no other country followed.
britain would collect around £13bn extra a year, eu governments could quadruple climate-adaptation spending, and the global south would receive $156bn – more than the imf's outstanding loans to those nations. the report contrasts apple's $112bn profit with general motors' $4.7bn in 1929 to show how outdated current rules are. ireland, facing $11bn in annual losses, is already putting aside windfall receipts, while india and nigeria have legislated to tax cross-border profits.
the editorial argues countries are reclaiming power from corporate lawyers and private tribunals, and that the us can't shield its companies from other rules. african nations are pushing for consensus where possible, majority rule where necessary, and britain should help them prevail.
why it matters: un-led push to tax multinationals where they operate could shift billions in revenue from havens to struggling governments.
source: theguardian_business
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