Remember that promise to tax all global (large) corporations a minimum of 15%?

We’ve been negotiating with the OECD  (the Organization for Economic Cooperation and Development) for a while- even before Donald Trump was president.   The original proposal was called Base Erosion and Profit Shifting [BEPS].

The multilateral instrument was designed to stop companies from “treaty shopping”- from looking from the lowest taxed nation to claim as its tax harbor. No more “Ireland”, “Luxembourg”, “Canary Island”, or similar tax domiciles.  It meant that each nation would be able to collect taxes from the profits garnered from its citizenry or via sales to its citizens.  And, it would replace some 3000+ bilateral tax treaties- and maybe that many loopholes that the big international companies employ.

Well, it may be that 137 countries agreed to the plan last year, creating the most significant world-wide tax change in about 100 years.  But…

Would it surprise you to see it was unraveling?

Let’s start with here in the USA.  I’m sure you recognize that Congress has done zilch to enact this change.

And, now, Poland vetoed the change at a meeting of the European Union finance ministers.  (This was after minor modifications mollified Malta, Estonia, and Sweden  back about a month ago.)

Poland’s objection is that they want the big technology firms to pay even higher taxes with the EU.  Which has caused France- and the rest of the EU to work on Poland to get this hard won deal back on track.

(I do find it nearly hilarious that the US Treasury is “confident” that the EU will “meet that commitment”.   Perhaps they can worry more about the US meeting its commitment?  Because unless the activity picks up, the odds are this legislation will hang around until after the elections, when it’s presumed the GOP will regain the majority.)

So much for a hard-negotiated treaty…

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