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Global Minimum Tax Supports Earlier Reforms: Treasury Official

July 21, 2021, 9:35 PM

The OECD-led plan to set a minimum global tax rate would help to backstop a 2015 effort to crack down on companies shifting profits to low-tax jurisdictions, a Treasury official said Wednesday.

The 2015 project aimed to align where multinationals were booking their profits with where they were generating and holding valuable IP, to address the problem of corporations shifting profits to low- or no-tax jurisdictions where they didn’t have economic substance.

But the OECD’s 2015 effort—and the concept of “DEMPE” it introduced to align the profits from IP with where it is created and maintained—still needs a global minimum ...

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