1. Banking - regulation.
Pillar 1 is the dimension of banking regulation which establishes minimum capital requirements based on market, credit and operational risks, and a minimum leverage ratio.
Additional capital requirements may be imposed by bank supervisors under Pillar 2.
2. Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).
Pillar 1 of the OECD's tax reforms proposed in 2021 would give taxing rights over the residual profits of large multinational enterprises to the jurisdictions where the customers and users are located.
- Treasurers may need to assist in compliance with Pillar 1
- "Pillar 1 [is] a new nexus rule, which reallocates a business’s residual profits to the jurisdictions that generate value without necessarily having a physical presence.
- If Pillar 1 is introduced, treasurers may need to assist in compliance, setting up bank accounts and arranging funds transfers in order to meet these liabilities."
- Graham Robinson, international tax and treasury partner PwC & Iain McDonald international tax and treasury director PwC - The Treasurer, Issue 4 2022 - December 2022, p40.
- Bank supervision
- Base erosion and profit shifting (BEPS)
- Basel III
- Capital adequacy
- Capital Conservation Buffer
- Corporation Tax
- Countercyclical buffer
- Credit risk
- Effective tax rate (ETR)
- European Union
- Financial reporting
- Global Anti-Base Erosion Rules (GloBE)
- Gross domestic product (GDP)
- Income Inclusion Rule (IIR)
- Income Tax
- Interest Rate Risk in the Banking Book
- Internal Capital Adequacy Assessment Process
- Leverage Ratio
- Market risk
- Multinational corporation/company
- Nexus rule
- Operational risk
- Organisation for Economic Co-operation and Development (OECD)
- Parent company
- Pillar 2
- Pillar 3
- PRA buffer
- Profit shifting
- Prudential Regulation Authority (PRA)
- Risk management
- Sister company
- Subject To Tax Rule (STTR)
- Supervisory Review and Evaluation Process (SERP)
- Tax avoidance
- Tax compliance
- Tax evasion
- Tax haven
- Tax rate
- Three Pillars of Capital
- Top-up Tax
- Transfer pricing
- Undertaxed Payments Rule (UTPR)