OECD’s Minimum Tax Plan Raises Concerns About Complexity (1)

Multinationals could face a complicated set of calculations under the OECD’s plan for making sure they’re paying a minimum rate of tax around the world.

A recent draft of the plan suggests that determining how much tax companies are effectively paying and where to make up the difference if they fall below a minimum threshold might be intricate.

Those calculations can be made even more complicated by the need to adjust for financial events. For example, if the sale of a subsidiary, which affects how much a business is taxed, falls after a company files its financial accounts, the company ...