Daily Tax Report ®

Global Minimum Tax Plan Needs Deferred Accounting: Rio Tinto

Jan. 15, 2021, 3:55 PM

Companies risk double tax issues severe enough to impact investment decisions, if the OECD doesn’t use deferred tax accounting to address timing differences in its minimum tax plan, a Rio Tinto official said Friday.

“The proposals in the blueprint as they currently stand will result in double taxation,” said Ann-Maree Wolff, the mining company’s head of tax. “For some industries, the impact of this is going to be sufficiently material to impact investment decisions” that would disproportionately affect resource-rich countries, she added.

The Organization for Economic Cooperation and Development’s minimum tax plan, known as “Pillar Two,” asks companies to...

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