On the weekend of June 5, 2021, news broke that Members of the G7 are aligned in implementing a global minimum tax rate, and that their respective treasuries will support a broader international effort to adopt proposed reforms.

In an article for Global Legal Post, Winston & Strawn Partners Ian Borman and James N. Mastracchio outline what the proposals mean, whether they will be effective, and if proposed reforms are viable.

The article highlights that a global minimum corporate tax rate has been discussed for many years as governments seek to disincentivise the shifting of profits to lower tax jurisdictions. The partners added that while it sounds simple, implementing a minimum global tax rate is in fact enormously complicated and it is unlikely that certain countries with low corporate tax rates would be willing to agree to any changes.

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