July 08, 2021

Anna Murray 

It’s rare to have a concrete agreement for 130 countries. Martin Sandbu is a European Economics Commentator for Financial Times.  He analyzed the pros and cons of the global taxation issue on July 4, 2021. 

The good side is that the reformation settles tax rate of organizations’ location. It difficultly calculates between physical and intangible products. It decides to levy a small amount of profit from company’s residence to where it sales. 

However, the bad side is that this reformation excluded bank and natural resources industries. Bank companies only pay tax to where they serve which won’t influence their taxing rights globally. If regulations improved, the tax base would be twice as now. 

The job of government should create an equal taxation principle to benefit globally. However, governments missed this chance to make the global tax reformation more equally, said Sandbu.

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