World leaders reach landmark deal on a global corporate tax rate

[ronwagn + 6,290]

https://www.cnbc.com/2021/10/08/oecd-reaches-deal-on-corporate-tax-after-ireland-agrees.html

More details in this article: https://taxfoundation.org/global-tax-agreement

What do you think of this? How will it affect energy corporations worldwide? Does it require congressional approval?

[Boat + 1,323]

I believe this is an attempt to get rid of tax havens around the world. If that is correct it would be great not to be able to hide money. In the US alone it is estimated over 400 billion plus in taxes that are owed that are not paid. This has gone on for decades. We’re 28 billion in debt. Obviously defrauding the US government requires global cooperation. The signing by 140 countries shows they have similar issues with tax fraud.

Is there teeth to make it work? I dought it. It’s a pleasant surprise to see an attempt though.

[Boat + 1,323]

The head of the IRS calculated that tax evasion in the U.S. may total $1 trillion a year, a figure that is multiples higher than previous estimates from the federal government.

Internal Revenue Service Commissioner Chuck Rettig told a Senate panel Tuesday that previous tallies of the tax gap — which came to a cumulative amount of about $441 billion for the three years through 2013 — didn’t include some tax-evasion techniques that weren’t on the agency’s radar at the time.

New estimates include the use of cryptocurrency, he said. Offshore tax evasion, illegal income that goes undetected by the IRS and underreporting from pass-through businesses also contribute to a larger than previously known tax gap, Rettig said.

“I think it would not be outlandish to believe that the actual tax gap could approach and possibly exceed $1 trillion per year,” Rettig told the Senate Finance Committee.
 

A Republican would phrase it this way. Joe Biden wants to give the IRS more power to spy. So who is the deep state? Who benifits from Socialism from fraud? 

[IlonFelt + 1]

Yeah, I mean, they agreed to a global minimum corporate tax rate of 15%, if I remember well. To be fair, I'm not sure that's really doable, but I would be pleasantly surprised if it will work out in the end. Wonder why I think so? Well, cause we've been in debt, and we're still in debt, and it's gonna take ages until we're out of debt. But, fingers crossed, and let's hope for the best. By the way, concerning taxes, has anyone used a paystub generator before? I'd like to generate paystub as well, but I have no clue which generator is the best. Any tips would be appreciated.

Edited February 4, 2022 by IlonFelt

[bobo88 + 58]

On 10/8/2021 at 9:04 PM, ronwagn said:

https://www.cnbc.com/2021/10/08/oecd-reaches-deal-on-corporate-tax-after-ireland-agrees.html

More details in this article: https://taxfoundation.org/global-tax-agreement

What do you think of this? How will it affect energy corporations worldwide? Does it require congressional approval?

The biggest benefit will be to bring manufacturing back to the U.S. 

No more "transfer pricing" passing profits thru a Low tax / No tax shell company thus no more keeping profits offshore away from the tax man.

You can be assured the big internationals (like apple) will fight this tooth and nail.

But the biggest loser is China hands down. 

The plan calls for a minimum of 15% Corp Tax.

The problem is how do you implement it

The problem is how do you enforce it .

Edited February 7, 2022 by bobo88

[nsdp + 449]

On 2/6/2022 at 8:29 PM, bobo88 said:

The biggest benefit will be to bring manufacturing back to the U.S. 

No more "transfer pricing" passing profits thru a Low tax / No tax shell company thus no more keeping profits offshore away from the tax man.

You can be assured the big internationals (like apple) will fight this tooth and nail.

But the biggest loser is China hands down. 

The plan calls for a minimum of 15% Corp Tax.

The problem is how do you implement it

The problem is how do you enforce it .

This isn't likely to fly because it kills  carried interest for Black Rock et al, limits deductions to cash at risk, and no restatement of increased asset value in mergers.   It would have to pass the House and Senate in the US.   These affect more companies than transfer pricing.

The lesson the US is learning from Boeing  and may learn from Oshgosh  is on skilled workforce on their transfers from Washington State  to South Carolina on the 787 and from Wisconsin to South Carolina on Postal delivery trucks. https://www.businessinsider.com/boeing-787-dreamliner-airline-complaints-quality-production-2019-8?op=1

[specinho + 457]

Errr…  reading newsletter on "tax Q&A" for a while.......... out of curiosity.

 

The feeling was like.............. pouring cold water over enthusiastic fire............

Alright........ taxing on toilet papers, stationery, computer, books, a cup of tea and services to serve plain water are really big deals...... People use them every day. The water splashing part is the teaching on how to avoid paying tax on those and requesting a refund on those.........

Imagine a teaching on how to avoid paying tax on toilet rolls........... "There are many ways.......," so the story goes.......

We were told ........... "Alright, the government is compassionate ( more likely is feeling guilty for burdening the people). So they offer a refund on those"............

The question might be............ why bother to tax, or no?

It might not be too reckless to assume that majority of the governments do not know what they are doing. Merely following standard operating procedure, or copying what other countries are doing without knowing the essence, might be the main reason for the hassle.......

Or, may be......... they have excessive staff, mostly idling. They need to find something to do for them........... So that.......... they could recruit more and absorb the impact of unemployment in the market ................

What are we doing?

 

 

 

Edited February 10, 2022 by specinho

[ronwagn + 6,290]

On 10/20/2021 at 10:51 AM, Boat said:

The head of the IRS calculated that tax evasion in the U.S. may total $1 trillion a year, a figure that is multiples higher than previous estimates from the federal government.

Internal Revenue Service Commissioner Chuck Rettig told a Senate panel Tuesday that previous tallies of the tax gap — which came to a cumulative amount of about $441 billion for the three years through 2013 — didn’t include some tax-evasion techniques that weren’t on the agency’s radar at the time.

New estimates include the use of cryptocurrency, he said. Offshore tax evasion, illegal income that goes undetected by the IRS and underreporting from pass-through businesses also contribute to a larger than previously known tax gap, Rettig said.

“I think it would not be outlandish to believe that the actual tax gap could approach and possibly exceed $1 trillion per year,” Rettig told the Senate Finance Committee.
 

A Republican would phrase it this way. Joe Biden wants to give the IRS more power to spy. So who is the deep state? Who benifits from Socialism from fraud? 

Biden wants to spy on anyone with $600.01 cents in a bank account. Counting inflation that would be $50.01 when I started out. 

[Boat + 1,323]

53 minutes ago, ronwagn said:

Biden wants to spy on anyone with $600.01 cents in a bank account. Counting inflation that would be $50.01 when I started out. 

Sounds like an infowar commercial. Like stop the steal.

While the claim is based in reality, it gets many of the facts wrong. The claim’s assertion is a proposal by the Biden administration, not a decision set in stone. The Treasury cannot “declare” any changes to law, as that is a legislative power that belongs to Congress. And even if the proposal is adopted banks would not provide access to individual transactions, just the total amount flowing in and out of an account annually. 

 

This is something we obviously need to watch but the end result needs to be that over 400 billion in tax revenues guys like Trump avoid needs to be paid.