Discussion Forums » Big Issues of our Time

Payment of Tax by multi-nationals

    • 100 posts
    February 20, 2017 4:35 PM GMT

    Globalisation and the internet have led to increasing reach and power of multi-nationals which has included minimising tax payments for themselves. How do we create a situation which we all regard as fair e.g. paying tax based on how much revenue they make from each economy irrespective of where they are nominally based.

    Is this something you think is a big issue or not?

    If so are you interested in developing ideas on solutions?

    Tony


    This post was edited by Tony Clack at February 21, 2017 11:07 AM GMT
    • 24 posts
    February 20, 2017 5:11 PM GMT

    Tony,

    I think this is one best left to the experts. An excellent piece of work here http://www.accaglobal.com/content/dam/acca/global/PDF-technical/tax-publications/tech-tp-mcsith.pdf examines some of the myths surrounding this issue and concludes 'It is not clear that tampering with the tried and tested norms of corporate income tax to (possibly) generate more corporate income tax revenue while reducing the corporate income tax collected in foreign economies, and possibly reducing investment at home, employment at home and consumption at home, is good policy.'

    Geoff

    • 24 posts
    February 20, 2017 5:47 PM GMT

    This is a complex issue and I fear that the law of unintended consequences would get into full swing if we started being too draconian with the likes og Google and Facebook. However, the power of these huge organisations does need to be reined in, so how governments do that is the really big issue.

     

    Dave

    • 100 posts
    February 21, 2017 11:17 AM GMT

    Agree completely that it's a complex issue but don't agree with leaving it to the experts. As the article you cite mentions the Corporate Tax world hasn't really caught up with the digital world. I think at the very least we have value to add in for example putting forward principles on which we would like to see Corporate taxation take place. I also think it's important just because so much in the press is about demonising big corporations and as ever the facts and pros and cons are not that visible without a bit of research.

    Don't think there is any topic we should consider off-limits, but will undoubtedly be some that are harder than others without specialist knowledge. However as the newtork grows there should be some specialist  Knowledge, Skills and Experience amongst us all to draw on. 

    Tony