The Global Tax Deal’s Missed Opportunity for Latin America

By José Antonio Ocampo, Tommaso Faccio

A lot more is needed to level the international playing field.

On July 1, the OECD Inclusive Framework announced that 130 countries had agreed to a global minimum tax of at least 15% and a new reallocation of taxing rights to market countries. The proposed deal is a missed opportunity to truly end tax avoidance by multinationals and generate meaningful revenues to support governments in their fight against the pandemic and the post-COVID recovery. The outcome of this negotiating process is particularly relevant to Latin America which relies more heavily on corporate tax revenue and has thus been hit harder by multinationals’ tax avoidance, which...

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