On October 8, the Organization for Economic Cooperation and Development (OECD) agreed to impose a global minimum tax of 15% on multinationals.
The historic agreement that ends the century-old tax system is backed by 136 countries that represent more than 90% of world GDP and will reallocate more than 125,000 million dollars.
However, the French daily Le Monde published an open letter from the 14 members of the ICRICT, the Independent Commission for the Reform of International Corporate Taxation, to the G20 members., composed of Joseph E. Stiglitz and Thomas Piketty, among others, where they consider that the agreement reached mainly benefits the rich countries.
The ICRICT considers that a comprehensive reform would have consisted of taxing all the global profits of multinationals based on their actual activities in each country, that is, assigning the global business profits of multinationals to different countries based on the key factors that generate profits (employment, sales and assets).
“Proposals for a global effective minimum tax of 21% (or even better of 25%, as we defend) were rejected in the search for the lowest common denominator of 15%, a success for Ireland, a loss for the rest of the world” he adds the text.
According to the Commission, the reform could have generated more than $ 200 billion in higher tax revenue worldwide at a 21% tax rate, but will only generate $ 100 billion at the agreed tax rate of 15%. .
The above because “By giving priority to the application of the minimum tax to the countries where the headquarters of the multinationals are located, it is expected that most of the additional income will be received by a small number of rich countries.” the signers claim.
The group argues that this criterion ignores the application of the principle of equity.
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