By The Associated Press
The Dutch government said Tuesday it plans to reform a business tax rule that allows wealthy multinationals to reduce the amount of tax they pay on their profits. The government said the plan, which has to be passed by parliament, will generate 265 million euros ($292 million) per year in new income. The announcement follows public outrage at revelations this year that some multinationals paid little or no tax on their profits.
In a September 9 letter, Sens. Amy Klobuchar, D-Minn., Chris Van Hollen, D-Md., and Tammy Duckworth, D-Ill., along with Rep. Peter A. DeFazio, D-Ore., asked Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig what steps they are taking to “mitigate the incentives for offshoring created by the 2017 tax law.”
Countries are less keen on introducing unilateral measures now that an OECD-led multilateral approach to adapt the international tax rules to the digital age is imminent, according to the OECD’s top official.