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The long and winding road to global corporate tax justice


Alex Cobham
More than 130 countries and jurisdictions have now signed up in principle to outline proposals to reform international corporate tax rules. These proposals and in particular, the global minimum corporate-tax rate envisaged would represent the biggest change for a century. But the reforms, now driven by the United States under Joe Biden, are also proving highly divisive, globally and within the European Union. That has potentially important implications for the tax rules and EU-US relations.
Donald Trump was a bad US president and an easy one for the EU to oppose. That’s part of the reason the tax negotiations, under the auspices of the Organisation for Economic Co-operation and Development’s ‘inclusive framework’, had largely ground to a halt by the November 2020 presidential election. Biden looks a better ally and the Treasury under Janet Yellen certainly knows on which side tax justice lies. But while the ‘America First’ agenda has gone, the new a ....

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