[Newsbot]

Title: Corporate tax avoidance 'scheme' hurting Canada, expert says
Category: Economics
Posted By: wildrosegirl
Date: 2014-03-15 07:30:12
Canadian

[BeaverFever]

$1:

"He says the situation has become so serious that some corporations are trying to "put the brakes on tax cuts", as they witness the effects on critical areas of the Canadian economy, such as education, health care and infrastructure.

Global efforts are underway for reform. The G8 and G20 summits asked the Organisation for Economic Co-operation and Development (OECD) to devise a new international corporate tax system.

"Ultimately, I think we need a unitary taxation system where multinational corporations have to report their global profits, and the profits should be taxed where the economic activities occur and the value is created," Howlett says. "If the corporations aren't paying their fair share, ordinary taxpayers are shouldering more of the tax responsibility."

Yup.

[Unsound]

I can agree with that. As long as it is truly global.

[smorgdonkey]

"Ultimately, I think we need a unitary taxation system where multinational corporations have to report their global profits, and the profits should be taxed where the economic activities occur and the value is created,"

Yes...and it should be retroactive 10 years.

[MeganC]

That's stupid. So if a company has places around the world they're supposed to pay all sorts of taxes as if all of it was in Canada? Why would a company want to stay Canadian? All some other country has to do is promise lower taxes and steal your companies.

[andyt]

MeganC MeganC:

That's stupid. So if a company has places around the world they're supposed to pay all sorts of taxes as if all of it was in Canada? Why would a company want to stay Canadian? All some other country has to do is promise lower taxes and steal your companies.

Well your question is certainly stupid, because the article makes clear that companies should pay tax in the country where they make the profit, not be able to channel those profits to a tax haven and then sneak them back to the country where the profits were made.

I'm not sure if I agree with any corporate taxes at all, but capital gains, ie dividends from those companies should be taxed 100% at the same rate as income.