An IMF research paper estimated that $12 trillion of global corporate investment was “just phantom investment” to avoid tax. The hurdles for enforcing or even defining a minimum tax are formidable. Britain has long connived in creating tax havens in British territories like Bermuda, British Virgin Islands, Cayman Islands, and the Channel Islands. Even if the nominal corporate tax rate is 30%, some companies (including new and small ones, not just giants) pay zero tax because of legitimate tax incentives. The simplest, most honest solution is to decree an Alternative Minimum Tax of 15% regardless of tax breaks.

Source: Economic Times June 12, 2021 20:48 UTC