An investigation by Reuters has found that companies could continue to reduce their tax burdens even after a rule from the OECD designed to stop the use of such schemes comes into effect.
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The new global tax on big multinationals has come under fire for having too low a rate. Nations in the Global South could be disadvantaged as they prefer larger corporate taxes to fund budgets.
OECD countries have come to an agreement over the taxation of global companies such a Facebook, Google and Apple. The new rules will see $150 billion in new tax raised each year from 2023.
The EU has asked the United States to come to the negotiating table at the OECD level in order to hammer out some rules over digital taxation. The EU wants to see digital firms fairly taxed.
The OECD has urged the UK to stall its plans to tax big tech revenues in the country. It comes after France announced a delay to its digital services tax after receiving pressure from the U.S.
