G7 agreement Who will benefit from the global minimum tax?

As of: 06/09/2021 8:49 a.m.

The G7 agreement on a minimum tax is celebrated as an epoch-making one. But there are still many hurdles waiting for it to come into effect. There are reservations, especially in countries that make a living from their reputation as tax havens. By Klaus-Rainer Jackisch, MR Luxury yachts lie in the port of Nassau, sun-hungry people loll on the beaches and people know how to celebrate at the colorful Junkanoo, the national carnival: The Bahamas comprises 700 islands on the edge of the Caribbean. For many, they are a little paradise – also in tax matters. Since the island nation became independent in 1973, the country has lived on luxury, tourism and customs duties – and on its reputation as a tax haven. There is no income or corporation tax here, and tax evasion is not a criminal offense. That could soon be over. The Bahamas are also one of the 139 countries that have committed themselves to the so-called BEPS project under the umbrella of the OECD. BEPS (Base Erosion and Profit Shifting) wants to combat tax evasion and prevent the relocation of profits by multinational corporations abroad. The project is, so to speak, the backbone for the global minimum tax, the implementation of which received a strong boost last weekend: There the finance ministers of the seven leading western industrial countries agreed (G7) for the introduction of such a tax. It should be at least 15 percent worldwide and thus prevent tax dumping in many countries. At the same time, companies should in future not only be taxable where they are based – but everywhere they sell their goods or services.

G20 summit as the next hurdle

The agreement is intended to end the practice that companies like Amazon, Facebook or Google are making billions in profits worldwide, but are looking for and finding so many loopholes when paying taxes that in the end only peanuts remain for the tax authorities. Federal Finance Minister Olaf Scholz spoke of a “tax revolution” after the ministerial round in London. The British department head Rishi Sunak called the agreement “historic”, US Treasury Secretary Janet Yellen underlined it as an “unprecedented step”. When, after the finance ministers, the heads of state and government of the G7 countries meet at the end of the week in St. Ives in Cornwall, England, the decision should only be a matter of form. But the plan is far from being dry. In July, the finance ministers of the 20 most important industrialized and emerging countries (G20) meet in Venice, where they are supposed to approve the agreement. That should be much more difficult. While Europeans (Germans, French, British and Italians), Americans, Canadians and Japanese have similar interests in the G7 body, preferences in the G20, which includes China, Brazil and Russia, are less homogeneous. It is unclear whether they will come to an agreement in the end. Finally, all 139 BEPS states under the OECD umbrella would have to agree to the proposal.

Ireland fears revenue shortfalls

In order for the supposedly epoch-making work to really come into force, many interests have to be brought under one roof. Especially in smaller countries, the project is not only a source of joy: In Ireland, for example, where companies only pay 12.5 percent tax, which is why Apple and Google particularly like to romp around here, there are fears of large revenue losses. The minimum rate of 15 percent could theoretically flush more money into the coffers. But it is questionable whether the tech giants will continue to settle on the green island. Ireland’s finance minister, Paschal Donohoe, does not count on it and expects annual losses of up to 2.4 billion euros for his country: “Ireland could lose up to a fifth of its total corporate tax income,” he said in Dublin. There are worried looks in Switzerland too. Around 100 large companies have their headquarters here, because some cantons only charge around ten percent corporate tax after all discounts have been deducted. It is particularly cheap for companies in the cantons of Appenzell and Zug. In the capital, Bern, the opinion is that small countries in particular, which do not have the advantages of a large domestic market, can also score points in international competition with other advantages: low taxes are right at the top of the list, like a good infrastructure and a High standard of living. Before the G20 meeting, Switzerland wants to fight for every percentage point.

“German tax authorities do not gain much”

While small states in particular are already anticipating the worst, the US should be the big winner. Not only because most large companies are based here. But also because the complicated project plays into the hands of the big countries. Because even after a minimum taxation of 15 percent, no country is obliged to apply this rate. Ireland could stay at 12.5 percent. However, the mother country of the company can then collect an additional 15 percent difference. In the case of the numerous US companies, this additional levy then flows into the states. “Regardless of where a company is based and where it has subsidiaries, it always pays at least this minimum tax rate,” says the financial scientist Dominika Langenmayr from the Catholic University of Eichstätt-Ingolstadt. But that also means that more taxes are paid “above all in the USA, not in Germany,” said the economist. Clemens Fuest, President of the Ifo Institute, also sees it this way: “The German tax authorities will not gain much from the minimum taxation,” he told the “Augsburger Allgemeine”. His institute calculated that Germany would lose around 5.7 billion euros annually by shifting profits. But the minimum tax project should only allow “less than two billion a year” to flow into Germany, according to Fuest.

It depends on the details

Such an agreement also has other consequences for the export nation Germany: The car manufacturers, for example, sell a growing proportion of their products in China and the USA, but currently pay their taxes mainly in Germany. “If taxation rights are shifted to the sales countries in the future, Germany could lose tax revenues,” said Fuest. In the end, it depends on how the reform is designed. The last word has not yet been spoken and many a compromise is likely to come out. It is therefore questionable whether the EU will actually earn 50 billion euros more annually as a result of the reform, as Brussels loudly proclaims. This also explains why the multilateral corporations that the set of rules is supposed to meet are currently rather relaxed. The G7 agreement is “a welcome step” that will help stabilize the international tax system, a spokesman for the online shipping giant Amazon told the US news portal “Businessinsider”.

Will Amazon be spared?

The Amazon case in particular raises the question of whether the reform will actually be as effective as it has been described. The small print of the agreement also states that the reform should only affect the very large companies that have a profit margin of at least ten percent. However, Amazon only gives its overall margin of three percent and should get away with a final agreement on this rate largely unscathed – unless you tax the more lucrative business areas separately. However, this raises questions of tax justice and could trigger even more bureaucracy. It is also criticized that the minimum tax rate of 15 percent is much too low anyway. The British development organization Oxfam fears that this would lower the overall tax level worldwide rather than increase it. In any case, it is “absurd” that the G7 wanted to reform the tax system by “setting up a worldwide minimum tax that is similar to the low tax rates in tax havens such as Ireland, Switzerland or Singapore,” says Managing Director Gabriela Bucher. Meanwhile, the potential losers will do everything possible not to lose their advantage entirely. Until the rules come into force, many a yacht will moor in Bermuda’s capital Nassau. Because there are no high taxes in the island paradise (yet).

The G7 summit in Cornwall The heads of state and government of the seven leading industrialized countries (G7) will meet from June 11th to 13th in Cornwall, southwest England. For the first time in two years, they will meet again in person in the afternoon. In addition to climate change, the conference will also focus on trade issues and investments as well as the fight against the corona pandemic. In addition, the meeting will focus on the positioning towards Russia and China.
The G7 group includes the USA, Germany, Great Britain, Canada, France, Italy and Japan. Like-minded democratic states such as South Korea, South Africa, Australia and India are invited to the summit as guests.

Kage Bushin Unlike Bunshin no Jutsu (Clone Technique), Kage Bunshin no Jutsu (Shadow Clone Technique) has a completely different level. With this jutsu, the user creates one or more clones of himself. Although many, the biggest difference here is that the clone image can completely affect other objects, just like a real living organism. When cast, each clone will share an equal amount of chakra, so it can completely bypass the Byakugan (White Eye). Each clone is linked together by very small chakra fibers and their endurance depends on the user. Another good thing is that the clones are almost closely linked to the main body, so the being can use this ability to observe the battlefield situation for themselves, or increase the learning rate many times faster than the main body. with normal. However, the drawback of this jutsu is that it consumes a lot of chakra, so only those with a large amount of chakra and good chakra tuning can master this jutsu. The higher version of the Kage Bushin is the Taju Kage Bunshin (Multiple Shadow Clone), which creates an unlimited number of clones, depending on the amount of chakra spent by the caster. For those possessing Tailed Beast chakra like Naruto, they can create hundreds of different versions at once. However, when cast, each clone will be divided with an equal amount of chakra. So, with too large a number, it will greatly affect the user, so this move is listed as a forbidden technique. Basically, this move was originally a product of Tobirama, but he himself was unable to use its full potential. Although it is easier to learn than most other forbidden techniques, how to use it is almost impossible. Hiraishin Hiraishin (Flying Lightning Divine Art) is one of Tobirama’s creations, and is also the form of jutsu he uses the most. To perform this jutsu, the caster marks a special mark, also known as the ‘sequence’, on a predetermined destination with just a light touch, be it a tree, stone, wall, or body. creatures and even weapons like shuriken, kunai. Unlike normal marks, this will last forever and therefore, the marked enemy will forever become the “destination” of the user. Once marked, they can freely enter the dimensional gap that teleports them to the pre-marked location. This teleportation speed is so fast that the user can surpass even the Raikage’s speed, regardless of whether or not they augment themselves with Lightning Armor. Thanks to Hiraishin, Namikaze Minato was nicknamed the “Golden Flash of Konoha” long before he became a Hokage. Minato primarily applies jutsu to his custom kunai before battle so that when the battle begins, he will launch them across the battlefield, giving the opportunity to teleport to any place at any time. With extremely fast reflexes, Minato can easily slip into enemy lines to destroy each target, then teleport to another location to continue attacking. As a result, it was almost impossible for the enemy to react in time and Minato could sweep an entire squadron in an instant. With this tactic, Minato helped Konoha to win over the Ikon army in the 3rd Shinobi World War even though they were initially outnumbered. Hiraishin can affect anything that has contact with the user (such as touching) or even their chakra. Using this principle, Minato blended his brother’s Nine-Tails of Yin chakra with his son’s Nine-Tails Yang chakra, in order to be able to teleport the Alliance of Shinobi. Tobirama and Minato are the only two shinobi able to perform this technique on their own in history. As for Genma, Raidou, and Iwashi, they have to work together. However, the weakness of this technique is that when teleporting, the amount of chakra required to cast will have to be equal to the number and size of the target. Therefore, when teleporting a giant like the Nine-Tails Kurama out of Konoha, Minato was almost exhausted from running out of chakra. From Hiraishin, Tobirama developed other techniques based on this jutsu, such as Hiraishingiri (Flying Thunder God Slash) and Hiraishin Goshun Mawashi no Jutsu (Fluid Return). With his powerful swordsmanship with superhuman teleportation speed, Hiraishingiri fatally wound Uchiha Izuna – Uchiha Madara’s younger brother. Meanwhile, Hiraishin Goshun Mawashi allowed Tobirama to swap positions at any time with another user of the Flying Thunder God Technique he marked.

In recent days, Jean Paul Gaultier has made world fashionistas question the meaning behind a post with only the words “The End” and the biography line “The end”. of an era” (end of an era). It turns out this is the beginning of a whole new Jean Paul Gaultier look with the return of the Ready-to-wear line after 6 years. The first comeback Ready-to-wear collection titled “Les Marins” will be released online on May 28. To complete this collection, the fashion house collaborated with 5 other designers including Ottolinger, Palomo Spain, Nicola Lecourt Mansion, Alan Crocetti and Marvin M’Toumo to jointly renew the imprint of founder Jean Paul Gaultier for their designs. surname. In particular, the Gaultier “branded” navy breton stripe will still be the highlight throughout the collection. To ensure that these heritage values ​​continue to be inherited and promoted by the next generation, designer Florence Tétier was appointed as the new Creative Director for Jean Paul Gaultier’s next journey. Sharing about this comeback, designer Florence Tétier confided: Everyone simply wants to wear Gaultier’s clothes “. Therefore, the decision to return to Ready-to-wear not only satisfies the admirers of Jean Paul Gaultier’s famous marine-inspired designs, but also marks a new and promising transformation. brand in the future. Designer Florence Tétier will assume the position of Creative Director at Jean Paul Gaultier. Posts: To Hoang Bao

Miss Luong Thuy Linh is one of the talented and complete queens of showbiz Viet, she has both perfect physique with the famous 1.22m long “Japanese sword legs”, intelligent and respectably educated. With the experience of many times judging at beauty contests big and small, the queen is trusted when she becomes a judge of the contest. Miss World Vietnam 2021 while in office. Luong Thuy Linh’s beauty makes Miss World Vietnam contestants feel extremely pressured. After being crowned Miss, Luong Thuy Linh became a name with great influence on the community through her achievements and countless outstanding activities. At the end of 2019, she represented Vietnam to attend the Miss World 2019 contest and entered the Top 12 without even asking for a vote. Next are the times to “dominate” the top fashion catwalks with the position vedette, first face thanks to own 1.22m long legs. The queen is also the favorite face on magazine covers as well as the muse of many famous designers in Vietnam. Luong Thuy Linh shared, in order to have this beautiful and extremely eye-catching set of photos, she and her team “played” together when taking pictures in the bad weather of Hoi An. The queen wears the designs of designer Cong Tri, wears accessories of famous brands such as Louis Vuitton, Hermès … showing off her top-notch beauty. Thanks to her rare and hard-to-find beautiful appearance, Luong Thuy Linh’s face alone is already an eye-catching highlight in each frame.