Companies worry that Pillar Two minimum tax rules could spawn double taxation.
- Independent human rights “experts” for the United Nations warned the OECD that its international tax reform implementing the 15% global minimum tax could, among other things, harm the rights of developing countries to collect tax from multinational corporations, thus sapping their ability to pay for social, economic, and other programs. The Tax Justice Network Thursday published a letter from the UN-affiliated experts to the Paris-based Organization for Economic Cooperation and Development asking the OECD to clarify its plans to assess the human rights impact of the two-pillar reform. (Tax Justice Network) (Law 360)
- Pillar two rules in the reform call for jurisdictions to apply so-called top-up levies on multinationals that are paying less than the 15% minimum on their global income. The minimum is supposed to apply to multinationals that have at least 750 million euros ($823 million) in annual global revenues.
- The OECD this week forecast that the rules will drastically reduce the amount of corporate profit that gets taxed at low rates around the world, raising jurisdictions’ overall tax revenues by as much as $192 million per year. (OECD.org)
- But as of Jan. 1 only about three dozen countries and jurisdictions–not including the US and China–were said to be ready to start applying the 15% global minimum tax to big multinational companies. (Legal Avocado)
- Nevertheless, companies are worried that Pillar Two rules could lead to double taxation, an EY survey of tax and transfer pricing professionals finds. (EY.com)
In Most US States, Wealthy Taxed at Lower Rates than Everyone Else
- In 41 US states, the wealthiest 1% of taxpayers pay lower tax rates than any other group, according to “Who Pays?”, a report by the Washington-based Institute on Taxation and Economic Policy. (ITEP.org)
- A Democratic proposal in California’s state Assembly would create a 1.5% excise tax on the global net worth of state residents with more than $1 billion in assets, and a 1% tax for those with more than $50 million in assets. (Sacramento Bee) Wealthy people who move out of the state could still be subject to the state tax, a report says. (WSJ)
- The new French government led by 34-year-old Prime Minister Gabriel Attal reappointed low-tax advocate Bruno Le Maire as minister of economy, finance, and industrial and digital sovereignty. (LegiFiscal)
- A US federal grand jury indicted a Los Angeles immigration and personal-injury lawyer on charges of money laundering, tax evasion, and obstruction. The charges stem from a probe of a $2.1 million bribe the attorney allegedly received while serving as an officer of Nigeria’s state-owned oil company, according to a Justice Department press release. (Justice.gov)
V&E Hires Former Tesla Attorney as Energy Tax Partner
- Big Houston-based law firm Vinson & Elkins hired tax and energy transition attorney Jorge Medina, a former Tesla in-house attorney, as partner in Los Angeles. Medina arrives from Shearman & Sterling, where he was head of renewables for the Americas. He was earlier partner and renewable energy practice co-leader at Pillsbury Winthrop Shaw Pittman. (VELaw.com)
- Professional services firm Alvarez & Marsal hired Singapore-based Shantini Ramachandra as managing director and tax lead for the ASEAN region. She was earlier partner at Deloitte. (Alvarez and Marsal)
- New York-based law firm Mintz & Gold said it’s launching a tax practice led by partners Howard M. Topaz and Philip E. Altman, who were recently partners at Hogan Lovells in New York. (MintzandGold.com)
Oracle, Deloitte Team Up on Pillar Two Solutions
- Enterprise software giant Oracle and professional services firm Deloitte said they’re teaming up to offer multinational companies software and services to help them manage Pillar Two minimum tax requirements. (PR Newswire)
