Transfer Pricing Report

Math-Based Global Tax Rules May Lead to Company-Country Deal (2)

Nov. 22, 2019, 1:24 PMUpdated: Nov. 22, 2019, 9:54 PM

Radical changes to the international tax system may be the only way to get more than 130 countries to agree to rewriting global tax rules.

Formula-based international tax rules—rather than the more subjective current methods— might be the best path to compromise between countries and companies as the global tax system is overhauled, they say.

A formulaic approach would be a considerable change from the current system of transfer pricing. However some companies say such a math-based approach would get more political support, and would help them as well.

“If you’re just counting votes it becomes not an option,” said...

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