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It matters who is not in. Cyprus doesn’t seem to be on the list, along with many others. All it takes is one country to make this irrelevant.
by dzink 5y ago
It matters who is not in. Cyprus doesn’t seem to be on the list, along with many others. All it takes is one country to make this irrelevant.
- pmoleri 5y agoOnly if the joined countries don't implement some kind of differentiated tax on products and services commiting from outside the list.
- dzink 5y agoIf the earnings are attributed to the country of evasion, and it is secretive as they all always are, how does the country of residence even know or prove how much they need to tax. The pandora papers would not be so revealing if it wasn’t for the secrecy part.
- pmoleri 5y agoThe money is coming out of non-secretive countries, right? Eg. by end user credit cards o by 3rd companies buying ads or data.
- mattmanser 5y agoThey can add a new rate for products sold by companies in non-signing countries. "Paying" £1,000,000 for intellectual property in the virgin islands? There's a 12.5% tax on that, not VAT, so no, you can't offset it, thanks!
- vegai_ 5y agoThat's easy to fix, at least technically: punish financially all the countries who don't sign this. Just requires willingness to do this.
- IkmoIkmo 5y agoNo, it just matters if countries are willing to implement consequences for non-membership. And that's frankly a pretty trivial thing from a political and technical perspective, so I'm assuming it'll come. Various countries already have lists, e.g. the EU has lists for 'non-cooperative third-countries', which can be used by member states to add witholding taxes for transactions with these countries in-particular as a preemtive measure to reduce aggressive tax avoidance. Ireland is not joining this agreement for no reason, they're doing it because non-membership will hurt them more in the end.