OECD Global Minimum Tax Penalty Relief Keeps Companies in Limbo

Companies aren’t convinced they’re in the clear after countries vowed to do their best to waive penalties for incorrect or late global minimum tax filings.

Countries’ own laws may constrain their ability to grant relief to businesses falling afoul of local GloBE Information Return requirements, tax practitioners say. And it isn’t clear under under recent OECD guidance whether companies will remain eligible for helpful safe harbors after returns are filed centrally, or if there will be knock-on effects for other tax reports.

“It is imperative that companies, acting in good faith, do not face penalties for circumstances outside their control,” ...