NEW DELHI: Buried in paragraph 32 of the declaration issued at the end of the G20 Summit in Rome, is the reference to a minimum corporate tax of 15% on companies using tax havens to avoid paying their legitimate dues. The question is why this weighty announcement figured so low in the declaration?
According to Mythili Bhusnurmath, consulting editor Economic Times, this suggests the reluctance of developed countries to crack down on a long-standing and pernicious practice. Some of these countries are tax havens: the UK has Guernsey and Jersey, while the US hosts one in Delaware. She notes that one building alone hosts thousands of office addresses.
In the process, countries like India get hit. E-Commerce firms are known to profit hugely from the Indian market but pay zilch as tax. India is demanding a better deal and says fair is fair, all should benefit. Will this approach, grounded in multilateralism work?
Tune in to this conversation with Mythilil Bhusnurmath on The Gist, on StratNewsGlobal.