Company Profits Without Borders Spurs Government Scrutiny: Taxes
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Policymakers around the world are stepping up efforts to tighten rules because a growing slice of corporate profits isn’t taxed in any country.
Multinational companies can legally structure transactions so they don’t pay tax anywhere, creating "stateless income" that is coming under attack as countries seek to fill budget gaps. The Obama administration, Organization for Economic Cooperation and Development and tax officials from other countries want to reach a consensus on how to combat the issue, with more than a dozen proposals being weighed, Bloomberg BNA reported.