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looking beyond borders

foreign policy and global economy

Archive for the tag “multinationals”

How To Tax A Multinational

For too long, multinational corporations – and digital firms in particular – have used existing rules to avoid paying taxes in countries where they do much of their business. But recent encouraging signs suggest that the idea of a global corporate tax on these companies’ profits is gaining traction.

Read Here – Project Syndicate

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Are Multinationals Eclipsing Nation-States?

In the absence of government action to address today’s most pressing global problems, multinational corporations are stepping up to offer their own solutions. As in the seventeenth century, when European joint-stock companies built private empires, the future of sovereignty is at stake.

Read Here – Project Syndicate

In China, The Tech Industry Does What Washington Can’t

In fact, over the last few years, Washington has lost its touch in dealing with China. Instead, the U.S. tech community has come to fill the diplomacy vacuum and has made headway on certain economic and cybersecurity issues. The ability of non-state actors to affect foreign policy is certainly not new—it is a trend that began after World War II—but it does signal important changes in the future of U.S.-Chinese relations.

Read Here – Foreign Affairs

And Why Does The World Love India CEOs?

With the appointment of Satya Nadella as chief executive officer, Microsoft has joined a growing club of multinational corporations run by Indian-born managers. The list includes Pepsi, Deutsche Bank, MasterCard, Adobe Systems, Diageo, London-traded consumer goods giant Reckitt Benckiser and semiconductor maker GlobalFoundries.

Read Here – Bloomberg

Why Foreign Companies Need To Swallow Their Pride And Get Used To Apologizing To China.

Despite 35 years of rhetoric about China being open to foreign business, and explicit promises China made on its accession to the World Trade Organization in 2001, foreign companies in practice have no right to operate in China. China’s policy makers — and no small number of its people — still maintain that it is a privilege for foreign firms to be allowed to access the Chinese market. Moreover, that privilege may be revoked at any time for a range of reasons, some of which are not laid out in law or on contracts.

Give Me Shelter: A New Era of Scrutiny for Tax Havens

When Google established its international tax scheme, it followed a path well worn by other multinational companies. The company booked its sales from outside the U.S. at its international headquarters in Ireland. Most of that profit was then sent on to the Netherlands, largely free of tax. From there, the money went on to a well-known tax haven, the sunny islands of Bermuda. By the time the technology giant parked its money there, it had reduced its foreign tax bill to the low single digits. The scheme, known in tax avoidance circles as the “Double Irish” with a “Dutch Sandwich,” helped Google save billions in taxes. Last year, for example, Google registered $4 billion in sales in the United Kingdom, but only paid $10 million in taxes in that European country.

Multinationals and the rich alike have long utilized tax havens from the Cayman Islands to Singapore — territories that collect low or no taxes on international businesses — to hide money and avoid hefty tax bills. Apple, Facebook and Pfizer have all purportedly employed a version of the “Double Irish.” And a study released by the Tax Justice Network in July found that wealthy individuals have stashed between $21 trillion and $32 trillion in offshore accounts. The lower sum is the size of the Japanese and U.S. economies combined. What’s more, analysts see growth in the hedge fund industry, which means more business for tax havens.

 

Read Here – Knowledge@Wharton

 

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