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How to Tax a Multinational

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15.04.2019

NEW DELHI – For some time now, multinational companies (MNCs) have been gaming the rules of the global economy to minimize their tax liability – or even eliminate it altogether. And for some time now, the Independent Commission for the Reform of International Corporate Taxation (ICRICT) has argued for the unitary taxation of MNCs. Fortunately, there have been some encouraging recent signs that the idea of a unitary tax is gaining traction.

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    Introducing a global minimum effective corporate-tax rate on MNCs of between 20% and 25%, as the ICRICT (of which I am a member) advocates, would greatly weaken these firms’ financial incentives to use so-called transfer pricing among their........

    © Project Syndicate