New tax policies announced at the weekend in the G7 communiqué will face hurdles as the proposals are yet to be agreed by the G20 and other jurisdictions, says ACCA today, asserting that the three foundations for a sound tax system are simplicity, certainty and stability.
Lloyd Powell, Head of ACCA Cymru Wales, said: “Committing to a global minimum tax of at least 15% on a country by country basis is a challenge, predicated on the agreement of other jurisdictions’ governments. To be truly effective it will need to go beyond the G7, and even the G20, to the OECD’s Inclusive Framework of 139 countries, requiring compromise as governments surrender legal sovereignty in return for an effective, practical framework.
“And the move for multinationals to pay tax in the countries where they do business – and not just were they are headquartered – will create new legal and accounting challenges for banks, businesses and tax authorities.”
ACCA says the main challenges are about achieving true parity and fairness. Lloyd Powell explains: “This is indeed a seismic…
