More eBay fees coming?

[dugoldstuff]

The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax of at least 15% in order to deter multinational companies from avoiding taxes by stashing profits in low-rate countries.

G-7 finance ministers meeting in London also endorsed proposals to make the world's biggest companies — including U.S.-based tech giants — pay taxes in countries where they have lots of sales but no physical headquarters.

Who's gonna pay for this new, waiting-in-the-wings tax on corporations such as eBay? Sellers by more fees?

[rebell45]

Of course, corporations don't pay taxes, their customers do.

[eleanor*rigby]

By posting this story, from a month ago, are you saying it's okay for multinational companies to avoid taxes by earning their income in a country like, say, the U.S. or France or England, but booking their profits in a country with a low- or zero-percent tax rate?

So you must be okay with companies like eBay, Amazon, Google or Facebook not paying their fair share of taxes?

And, of course customers of those companies will pay for the tax increase, just like an eBay seller's customers end up paying for increased FVFs or shipping costs. It's okay for eBay sellers to charge their customers more to cover increased overhead, but not eBay itself?

The current U.S. corporate tax rate is 21%. You think it's alright for corporations to earn their income in the U.S., but shift the profits to a country with a lower tax rate? As an American taxpayer, I would think we'd all be outraged that happens and cheer the proposal of the G-7.

[eleanor*rigby]

I should clarify that I have no knowledge that eBay shirks its corporate tax responsibility by booking profits in countries that have a lower tax rate, nor am I particularly motivated to research it.

[donsdetour]

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@eleanor*rigby wrote:

I should clarify that I have no knowledge that eBay shirks its corporate tax responsibility by booking profits in countries that have a lower tax rate, nor am I particularly motivated to research it.

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Thanks for clarifying that...

[musicforyoureyes]

But I think we can put the dots together just fine.

[eleanor*rigby]

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@musicforyoureyes wrote:

But I think we can put the dots together just fine.

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Especially if those dots align to fit one's particular agenda.

But did you want to weigh in on the actual topic of thread, which is the recommendation of the G-7 for a global 15% minimum corporate income tax? Do you think it's a good idea? A bad idea? If so, why or why not?

One-line, off-the-cuff remarks are common on a discussion board, but isn't it more conducive to  "discussion" to actually contribute some substantive comments to the conversation? 

[eleanor*rigby]

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@donsdetour wrote:

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@eleanor*rigby wrote:

I should clarify that I have no knowledge that eBay shirks its corporate tax responsibility by booking profits in countries that have a lower tax rate, nor am I particularly motivated to research it.

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Thanks for clarifying that...

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Do you happen to know whether eBay indulges in that practice?

[mam98031]

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@eleanor*rigby wrote:

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@donsdetour wrote:

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@eleanor*rigby wrote:

I should clarify that I have no knowledge that eBay shirks its corporate tax responsibility by booking profits in countries that have a lower tax rate, nor am I particularly motivated to research it.

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Thanks for clarifying that...

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Do you happen to know whether eBay indulges in that practice?

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Ebay is a publicly traded company and there are SEC rules that might just frown on that practice.  But we'd have to check the rules to be sure and I'm not an expert on this stuff at all.

[eleanor*rigby]

Since the OP obviously quoted verbiage from somewhere--even though not bothering to credit the source--I did some Googling . . . 

First, it's my understanding that these are profits earned in other countries and stashed in countries with lower tax rates. It is not profit earned in the U.S. and then shifted outside the country. Someone can double check that if they think that's not the case.

Several articles referenced Apple, Google, Facebook and Amazon in the discussion of the proposed corporate tax rate, so one could infer they have taken advantage of lower corporate tax rates in other countries. Apple, Google and Facebook were specifically mentioned as "having a presence" in Ireland, which has a corporate tax rate of 12.5%.

One article listed eBay as one of the larger corporations this proposal would impact but did not imply that eBay actually takes advantage of the practice.

From another article:  " . . . the final statement was silent on several key points, including exactly which of the “largest and most profitable” multinationals would be covered by the proposal . . . "

I did not see eBay specifically mentioned in any of the several articles I read on this G-7 proposal. I did, however, find an older article (2012) suggesting eBay does shift profits in their EU business dealings, declaring their profits from other EU countries in Luxembourg/Switzerland, but that is in compliance with EU corporate tax regulations. Another older article (2014) described the tax implications of eBay bringing overseas profits back to the U.S.

[48hrs-clothing]

Minimum 15% Global corporate tax is a dream and I can not see all countries agreeing to this willingly as there are a number of nations with 0% corporation tax which is their only way of attracting to large businesses.

In order to make a meaningful change company laws in west need to change to stop parent company charging it's subsidiaries therefore reducing their tax liabilities in country of operation.

For me interesting part of this declaration is" pay taxes in countries where they have lots of sales but no physical headquarters".

I am not a political commentator and no doubt devil will be in detail but again that seems to be an attack on economic threats posed by their declared FOE.

I wonder if they mean a Russian company doing business in Europe ( Selling Natural Gas as an example)  with no physical headquarter will be targeted by West and in return may be a company like McDonald's will be targeted in Russia.

Overall I took this last G-7 meeting confirming economic war that has been taking place for decades.