Finally, some (reasonably) good news: after years of negotiations, 136 countries have reached an agreement to tackle corporate tax evasion.
The deal brokered in Paris on Friday has two "pillars". The first involves taxing a slice of the world’s largest multinational companies’ profits based on where their sales occur, which aren’t so easily siphoned off to tax havens. The second is a global minimum corporate tax rate of 15%. If properly implemented, these measures would make "jurisdiction shopping" far less practicable and lucrative.
It’s not a perfect deal, partly due to last-minute horse-trading to win over recalcitrant low-taxing countries. The 15% rate is lower than many had recommended, and the words “at least” were dropped to appease evasion-enabler Ireland, stalling momentum for increasing the rate in coming years.