Financial CHOICE Act and Global minimum tax rate: Difference between pages

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(Add quote. Source: Reuters https://www.reuters.com/business/countries-backs-global-minimum-corporate-tax-least-15-2021-07-01/)
 
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''US bank regulation''.
''Tax - profit shifting.''


A bill to repeal substantial parts of the Dodd-Frank Act.
(GMT).


CHOICE is an acronym for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.
The concept of a global minimum corporation tax rate is to reduce, or eliminate, the benefits to multinational corporations of profit shifting.




<span style="color:#4B0082">'''''Dodd-Frank replacement unveiled'''''</span>
:<span style="color:#4B0082">'''''130 countries back global minimum corporate tax of 15%'''''</span>


:In an ambitious plan to undo the US Dodd-Frank financial reform law, the head of the US House of Representatives banking panel has released a second draft of a replacement act.
:"Most of the countries negotiating a global overhaul of cross-border taxation of multinationals have backed plans for new rules on where companies are taxed and a tax rate of at least 15%...


:... Republicans including President Trump believe Dodd-Frank, which has not been fully enacted, is unduly burdensome on banks and businesses, and restricts lending.
:The Organisation for Economic Cooperation and Development (OECD), which hosted the talks, said a global minimum corporate income tax of at least 15% could yield around $150 billion in additional global tax revenues annually.


:''The Treasurer magazine, May 2017, p8''
:It said 130 countries, representing more than 90% of global GDP, had backed the agreement at the talks.


:New rules on where the biggest multinationals are taxed would shift taxing rights on more than $100 billion of profits to countries where the profits are earned, it added.


<span style="color:#4B0082">'''''Financial CHOICE Act died, but parts of it were incorporated into other bills'''''</span>
:Technical details are to be agreed by October so that the new rules can be implemented by 2023, a statement from countries that backed the agreement said.


:This bill would make sweeping changes to the financial regulatory system by revising the changes that were put in place after the 2008-2009 economic crash. The bill would weaken the Consumer Financial Protection Bureau, the Financial Stability Oversight Council, and regulations that prevent commercial banks from trading for their own gain, among other changes.
:The nine countries that did not sign were the low-tax EU members Ireland, Estonia and Hungary as well as Peru, Barbados, Saint Vincent and the Grenadines, Sri Lanka, Nigeria and Kenya.


:This bill was introduced in a previous session of Congress and was passed by the House on June 8, 2017 but was never passed by the Senate. Provisions of this bill were incorporated into other bills.
:Holdouts risk becoming isolated because not only did all major economies sign up, but so did many noted tax havens such as Bermuda, the Cayman Islands and the British Virgin Islands."


:''US GovTrack, accessed May 2020''
:''Reuters, July 2021.''




== See also ==
:<span style="color:#4B0082">'''''Global minimum tax'''''</span>
* [[Dodd-Frank]]
 
*[[Too Big To Fail]]
:"Finance Ministers from the Group of Seven (G7) rich nations reached a landmark accord... backing the creation of a global minimum corporate tax rate of at least 15%, an agreement that could then form the basis of a worldwide deal...
*[[Vickers Report]]
 
* [[Volcker Rule]]
:The global minimum tax rate would apply to overseas profits. Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the minimum rate, eliminating the advantage of shifting profits.
 
:The OECD said last month that governments broadly agreed on the basic design of the minimum tax but not the rate. Tax experts say that is the thorniest issue, although the G7 accord creates strong momentum around the 15%-plus level."
 
:''The Journal of Accountancy, June 2021.''




===Other links===
== See also ==


[http://uk.practicallaw.com/3-502-8950 Summary of the Dodd-Frank Act: Swaps and Derivatives, Practical Law]
* [[Base erosion and profit shifting]]
* [[Corporation Tax]]
* [[European Union]]
* [[G7]]
* [[GDP]]
* [[Holdouts]]
* [[Income Tax]]
* [[Multinational corporation/company]]
* [[Organisation for Economic Co-operation and Development]] (OECD)
* [[Profit shifting]]
* [[Tax avoidance]]
* [[Tax evasion]]
* [[Tax haven]]
* [[Tax rate]]
* [[Transfer pricing]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 01:49, 2 July 2021

Tax - profit shifting.

(GMT).

The concept of a global minimum corporation tax rate is to reduce, or eliminate, the benefits to multinational corporations of profit shifting.


130 countries back global minimum corporate tax of 15%
"Most of the countries negotiating a global overhaul of cross-border taxation of multinationals have backed plans for new rules on where companies are taxed and a tax rate of at least 15%...
The Organisation for Economic Cooperation and Development (OECD), which hosted the talks, said a global minimum corporate income tax of at least 15% could yield around $150 billion in additional global tax revenues annually.
It said 130 countries, representing more than 90% of global GDP, had backed the agreement at the talks.
New rules on where the biggest multinationals are taxed would shift taxing rights on more than $100 billion of profits to countries where the profits are earned, it added.
Technical details are to be agreed by October so that the new rules can be implemented by 2023, a statement from countries that backed the agreement said.
The nine countries that did not sign were the low-tax EU members Ireland, Estonia and Hungary as well as Peru, Barbados, Saint Vincent and the Grenadines, Sri Lanka, Nigeria and Kenya.
Holdouts risk becoming isolated because not only did all major economies sign up, but so did many noted tax havens such as Bermuda, the Cayman Islands and the British Virgin Islands."
Reuters, July 2021.


Global minimum tax
"Finance Ministers from the Group of Seven (G7) rich nations reached a landmark accord... backing the creation of a global minimum corporate tax rate of at least 15%, an agreement that could then form the basis of a worldwide deal...
The global minimum tax rate would apply to overseas profits. Governments could still set whatever local corporate tax rate they want, but if companies pay lower rates in a particular country, their home governments could “top-up” their taxes to the minimum rate, eliminating the advantage of shifting profits.
The OECD said last month that governments broadly agreed on the basic design of the minimum tax but not the rate. Tax experts say that is the thorniest issue, although the G7 accord creates strong momentum around the 15%-plus level."
The Journal of Accountancy, June 2021.


See also