Home WORLD Tech giants must pay fair taxes to help tackle COVID | Coronavirus pandemic

Tech giants must pay fair taxes to help tackle COVID | Coronavirus pandemic

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Since the beginning of the pandemic, the leaders of the wealthiest countries will attend the G7 summit in Cornwall, England, from June 11th to 13th.

The leaders of the Group of Seven nations at the summit will resolve many complex global issues, namely how to end the pandemic, initiate a recovery and make better preparations for climate change. Not only is the host country of the G7, but also the host country of the United Nations Climate Change Conference later this year, the British government is under pressure.

The question everyone wants to know is: Who will bear the cost of solving these global problems?

New action assistance the study The report shows that the Group of Twenty (G20) countries may lose up to 32 billion U.S. dollars in taxes each year from just the world’s five largest technology companies. The tech giants Amazon, Apple, Facebook, Alphabet and Microsoft can pay for two full doses of the COVID-19 vaccine for everyone on the planet with just one year of fair tax.

Of course, this number only provides a sense of the scale of resources involved in taxing large technology companies. In practice, by sharing knowledge and technology, vaccine production can be accelerated to reach as many people as possible.

One way is to temporarily abandon patents for vaccines and other COVID-19 therapeutics and diagnostics, which is supported by India, South Africa, and more than 100 countries in the World Trade Organization.The Biden administration recently Support exempt vaccine patents, We urge the host country of the Group of Seven (G7) to follow the example of the British government.

But ActionAid’s new report “Mission Recovery: How Big Tech’s Tax Act Starts a Fairer Economy” provides a viable way for the government to increase tax revenues, fund vaccines, public services, and green recovery.

Tech giants such as Amazon, Apple, Facebook, Alphabet, and Microsoft have carried out extensive market activities around the world and accumulated billions of dollars in profits during the pandemic. If the global corporate tax system is fair, governments can increase their tax revenues and fund better health systems to help end the pandemic and begin recovery.

With U.S. Secretary of the Treasury Janet Yellen (Janet Yellen) Comments on corporate tax Recently, this is a time when campaigners hope to have the lowest global corporate tax, which will affect the Silicon Valley tech giants, big polluting companies and many billionaires whose wealth has doubled during the COVID-19 pandemic.

In some people’s minds, another question is: How should we determine the corporate tax that a large technology company should pay in each country/region in which it operates? There are many ways to calculate, but most recommendations suggest looking at factors such as sales, assets, and the number of employees in each country. In the absence of transparent company reports, collecting such data is not easy, but by looking at proxy metrics (number of users per country), we can get useful estimates. For example, in only 20 developing countries, nearly 1.5 billion Internet users are accessing Google, about 900 million people are using Microsoft, and there are more than 750 million Facebook users. For these companies, the number of users is a good indicator of their sales and assets. For digital companies, user data may be the most valuable commodity-it can be mined in a variety of ways and then sold.

Action Aid is one of the appeals of many organizations. These organizations call for meaningful reforms in international corporate taxation to ensure that the taxation of companies reflects their true economic conditions and to propose a minimum tax rate to help solve the problem of tax havens. First, we need to know that these companies are paying (or not paying) in all the countries where they are located. Some companies, such as the large banks in the European Union, are already subject to “international public reporting”, which involves companies publicly disclosing key financial and tax data, broken down by the country in which they operate. This requirement should be extended to all large multinational companies. In addition, we hope that countries in the global South will have a meaningful say in formulating global tax rules. This is why we support the call for the establishment of the United Nations Taxation Commission, which has the power and resources to formulate and implement fair taxation rules.

Every day, people are hit hardest by the pandemic: informal workers with unstable contracts, frontline health heroes and basic workers (most of whom are women). Hard-working taxpayers all over the world should lose their tempers, because the world is suffering from unprecedented health and economic crises, which are making headlines about the wealthy becoming richer every day. Since the beginning of the pandemic, the wealth of 1% of the population has increased by 3.9 trillion US dollars, and the International Labor Organization has found that global workers lost 3.7 trillion US dollars in income during the same period.

ActionAid’s latest research shows that overdue and pending international corporate tax reforms could endanger billions of dollars – enough to change the global underfunded healthcare and education systems. In the absence of a global tax agreement, countries can take unilateral measures to impose taxes on the profits or transactions of these companies.

The views expressed in this article are those of the author and do not necessarily reflect Al Jazeera’s editorial stance.



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