The new rules mean higher tax burdens for large multi-national firms, but will also make it more difficult for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates. [...]
Big internet companies say they follow tax rules but have paid little tax in Europe, typically by channeling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes.[...]
If companies are still able to find a way to book profits in low tax or offshore havens, countries could then apply a global minimum tax rate to be agreed under the second pillar. [...]
Britain and France have been the most vocal about the need for a so-called “digital tax,” arguing that corporate tax codes are no longer fair in the age of the large-scale provision of services and the sale of consumer data over the Internet.
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