G7 taxation proposals vs zero-10

[NoTail]

As I understand it we can choose to keep  0/10. 

If Google decided to have a Manx operation we would charge 0% on Manx profits, they would then pay that minimum tax of 15% to America. The proposals only seem to apply to  very large companies so unlikely to affect us for a while. But the writing is on the wall.

[pongo]

1 minute ago, NoTail said:

As I understand it we can choose to keep  0/10. 

Etc

It's also about other aspects of the deal which appear to have the potential to impact the ability of businesses and contractors here to buy services from companies based elsewhere. If they have to set up separate accounting streams just to service customers here.

[pongo]

The biggest issue right now is the immediate uncertainty.

[Gladys]

16 minutes ago, pongo said:

It's also about other aspects of the deal which appear to have the potential to impact the ability of businesses and contractors here to buy services from companies based elsewhere. If they have to set up separate accounting streams just to service customers here.

Are you sure that will be a problem?  They will have to account anyway, it will just be a case of a geographical identifier, unless I am missing something. 

[Boo Gay'n]

We have been here before a number of times.  These big shindigs always to have to tell the media that they have produced a plan to save the world.  The full communiqué of this one is here, and the meat of it is below.  As previous posters have said, it will take ages to bring in (if it happens), will mutate as the planning proceeds and so what see now is unlikely to be what we will get.

During the meeting, Finance Ministers agreed the principles of an ambitious two Pillar global solution to tackle the tax challenges arising from an increasingly globalised and digital global economy.

Under Pillar One of this historic agreement, the largest and most profitable multinationals will be required to pay tax in the countries where they operate – and not just where they have their headquarters.

The rules would apply to global firms with at least a 10% profit margin – and would see 20% of any profit above the 10% margin reallocated and then subjected to tax in the countries they operate. 

The fairer system will mean the UK will raise more tax revenue from large multinationals and help pay for public services here in the UK.

Under Pillar Two, the G7 also agreed to the principle of at least 15% global minimum corporation tax operated on a country by country basis, creating a more level playing field for UK firms and cracking down on tax avoidance.

Discussions on the two Pillars have been ongoing for many years – with the Chancellor making securing a global agreement a key priority of the UK’s G7 Presidency. The agreement will now be discussed in further detail at the G20 Financial Ministers & Central Bank Governors meeting in July.

Improving climate disclosures:

Finance Ministers also accelerated action on environmental issues, following in the UK’s footsteps by committing for the first time to properly embed climate change and biodiversity loss considerations into economic and financial decision-making.

[Boo Gay'n]

I should say though that if it does come to pass, there really would be no reason for international business to remain in the Isle of Man.

[The Dog's Dangly Bits]

3 hours ago, Derek Flint said:

But there is a need to start planning now.

there was likely a need to start planning ten years ago, to be honest

Planning was started ten years ago.  Probably longer actually when we started exchanging information with the UK in 2005 ish.

[Twitch]

4 minutes ago, The Dog's Dangly Bits said:

Planning was started ten years ago.  Probably longer actually when we started exchanging information with the UK in 2005 ish.

They started planning Douglas Prom refurbishment 10 years ago and look how well that's turned out.

[quilp]

4 hours ago, Banker said:

Strange how you ignore links & published information to spread your misinformation constantly 

That's a bit rich coming from someone who doesn't even read most of their own links thus resulting in your missed-information... 🤭

Edited June 6, 2021 by quilp

[Derek Flint]

1 hour ago, Gladys said:

Replacing the income that sector generates. 

We've been looking for that holy grail for some time now. I'm not sure a stream exists 

1 hour ago, NoTail said:

As I understand it we can choose to keep  0/10. 

If Google decided to have a Manx operation we would charge 0% on Manx profits, they would then pay that minimum tax of 15% to America. The proposals only seem to apply to  very large companies so unlikely to affect us for a while. But the writing is on the wall.

So why would they bother to have an operation here?

29 minutes ago, The Dog's Dangly Bits said:

Planning was started ten years ago.  Probably longer actually when we started exchanging information with the UK in 2005 ish.

Was that actually a plan?

[pongo]

45 minutes ago, Gladys said:

Are you sure that will be a problem?  They will have to account anyway, it will just be a case of a geographical identifier, unless I am missing something. 

Quote

Under Pillar One of this historic agreement, the largest and most profitable multinationals will be required to pay tax in the countries where they operate – and not just where they have their headquarters.

So here I am in the IOM as a contractor buying web services from Azure or AWS. Industry standards - and used by many companies here.

How I read that quote Amazon and Microsoft are then required to pay taxes here if they still allow me to buy services.

I would be happy to be told that I am misunderstanding that. I suppose it hinges on what 'operate' means.

[SleepyJoe]

[TheTeapot]

Although its blatantly obvious that corporations completely take the piss when it comes to their tax affairs, have to say I'm a bit uncomfortable with a global tax rate led by the US. Also a bit surprised by how much support and seemingly little criticism it seems to be getting.

[Albert Tatlock]

...even Boris Johnson was getting tax bills from the USA...

https://www.artiopartners.com/renounce/boris-johnson-pays-irs-tax-bill/

[Gladys]

17 minutes ago, pongo said:

So here I am in the IOM as a contractor buying web services from Azure or AWS. Industry standards - and used by many companies here.

How I read that quote Amazon and Microsoft are then required to pay taxes here if they still allow me to buy services.

I would be happy to be told that I am misunderstanding that. I suppose it hinges on what 'operate' means.

But they have your details so is it really a big deal to give that income a geographic source, they will have to do it for other places.  They probably already do break down revenue geographically anyway.