US Finance Minister Janet Yellen found new weapons in the fight against offshore and tax evasion with their help writes Financial Times. She invited all countries of the world to introduce minimal income tax of transnational corporations.
Such a measure, according to Yellen, will make a meaningless race of states and jurisdictions for more preferential and attractive conditions for foreign companies. Currently, in many of them (not all are offshore) installed at the minimum level or there are no profit taxes at all.
This allows companies to register in countries and provide them with income by paying services for local lawyers and registering bodies, as well as avoid paying tax before the repatriation of the received profits to their homeland – to the head office registration country.
In addition, many of these companies perform the functions of holding structures designed to hold shares in the country in the country of initial registration and receiving dividends from them and interest on obligations. This becomes possible due to the fact that many countries with preferential modes concluded international agreements on the avoidance of double taxation, which makes it possible to significantly reduce the bet on the conclusion of capital abroad.
Yellen’s statement was made a few days after the announcement of a large-scale presidential plan of Joe Bayden to restore the national economy, providing for the allocation of 1.9 trillion dollars to citizens, companies and banks. US authorities in this regard are looking for new budget replenishment methods.