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Te wiki o te tāke; What’s happening with international tax? – Interest.co.nz

Summary

The Week In Tax · The changing international tax scene with Professor Craig Elliffe

My guest today is Craig Elliffe, Professor of Law at the University of Auckland. Craig has had a very distinguished and accomplished career. He was a tax partner at KPMG and then at Chapman Tripp before moving into academia at the University of Auckland. Craig was also a member of the Michael Cullen chaired Tax Working Group and in in April this year published the award winning, and highly relevant book, T…….

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The Week In Tax · The changing international tax scene with Professor Craig Elliffe


My guest today is Craig Elliffe, Professor of Law at the University of Auckland. Craig has had a very distinguished and accomplished career. He was a tax partner at KPMG and then at Chapman Tripp before moving into academia at the University of Auckland. Craig was also a member of the Michael Cullen chaired Tax Working Group and in in April this year published the award winning, and highly relevant book, Taxing the Digital Economy. He’s joining me today to discuss the recently announced agreements on international taxation.  Kia ora. Craig, welcome to the podcast. Thanks for joining us.

So what has been agreed and how important are these agreements?

CRAIG ELLIFFE
Well, there’s been a lot of discussion, a lot of politics, and even just as recently as last month, a clear political statement by what are now at least 141 countries, representing greater than 95% of the world’s GDP. And what they’ve agreed is effectively two brand new pillars which they’re calling Pillar One and Pillar Two. They are a new consensus reached on how to tax global transactions.

TERRY BAUCHER
There’s two parts, as you say, Pillar One and Pillar Two.  And Pillar Two, is the one attracting quite a bit of attention because it’s basically proposing a global minimum corporate tax rate of 15%. Is that high enough?

CRAIG ELLIFFE
Well, many commentators say no. And I guess this is the thing when you have a global consensus, you don’t get a global consensus with an extreme of one sort or another because there will be some countries who don’t want a global minimum tax at all. And there’ll be some countries who fiercely want it for a variety of different reasons. In the end, I think 15% represents an amount which is certainly lower than most developed countries’ corporate tax rates.

But we’re in a period of time when I think Corporation Tax is under quite significant focus because there will be quite a few budgets that are that are both in deficit and economies with substantial borrowing. So my sense is that 15% is quite a good place to have landed in the sense that for those countries for whom the tax rate is viewed as competitive, they still probably feel as though they can do something. And for those who view this as a key element of cooperation amongst different countries, it’s significantly better than the than the current position with of not having one at all.

TB
Yeah, and just talking about those who haven’t joined Nigeria, Kenya and Pakistan were three of those countries.  Nigeria and Pakistan are in the top 10 most populous countries in the world, and Nigeria is also Africa’s biggest economy and Kenya is …….

Source: https://www.interest.co.nz/personal-finance/113454/terry-baucher-and-professor-craig-elliffe-assess-recent-global-agreements