Global Tax Goes Against Tax Evasion, But Lacks Rules
Tax attorney Eugenio Grageda commented for Reforma about the challenges associated with the implementation of the global minimum tax proposed by the Organization for Economic Cooperation and Development (OECD). The OECD announced that 136 countries have said they will cooperate with the agreement to avoid tax evasion by international companies. Mr. Grageda explained that one of the challenges of implementing this agreement is that these countries have not established the base that will be used to calculate the tax.
"The rate is nothing if you do not define the base over which the 15 percent should be fixed, it's not defined and the negotiations surrounding the technical aspects will continue in the OECD," he said. "Then, if a reduced number of countries implement the global minimum tax, the companies whose headquarters are located in countries that do implement it, let's say Mexico, the Mexican companies are going to look to relocate to another jurisdiction that has not adopted this tax and the effort will be in vain."