G20 finance ministers meeting in Italy have agreed to a reform of tax on multinational companies that is meant to stop nations from using ultra-low tax rates to attract businesses.
The world's top economies would be the biggest gainers of the preliminary deal brokered by the Organisation for Economic Co-operation and Development while tax havens would be the biggest losers.
The US, Germany, France and many of the world's biggest economies are the countries are where multinationals do most of their business but are less and less likely to have their tax bases.
These countries stand to benefit from a measure that would redistribute part of the corporate taxes raised to nations where multinationals actually make their profits.
The imposition of a minimum rate of 15 per cent rate (with fewer possibilities to lower it) would also increase the amount of tax to be distributed.
According to the OECD, which led negotiations that produced a draft tax reform agreement among 131 nations, setting a minimum effective tax rate of 15 per cent would generate an extra $150 billion in revenue a year.
Many nations have rates higher than 15 per cent on paper, but with so many exemptions that companies end paying much less. Most of these exemptions would be closed, so companies would end up having to pay at least 15 per cent.
The CAE, a body charged with providing economic analysis for the French government, has calculated that Paris would probably receive an extra €6 billion ($7.1bn) in tax revenue a year.
Germany would probably receive €8.3bn and the US about $18bn.
China would also benefit as it is expected to be able to continue to provide certain tax incentives to support business development.
However, for every winner, there are also losers, including countries that have set low tax rates to lure businesses to set up in their countries. Tax havens that charge little or no tax stand to lose the most.
While Barbados and Saint Vincent and the Grenadines have baulked at the deal, other tax havens such as Panama, Bermuda and the British Virgin Islands have nonetheless signed up.
"They have realised that they do not have the capacity to block an international deal and calculated that it is in their interest to be co-operative," said Nicolas Veron, an economist at the Peterson Institute for International Economics in Washington and the Bruegel Institute in Brussels.
"Countries which attracted shell companies for years will suffer from the reform and will have to find other development strategies," said Farid Toubal, a professor of economics at the University of Paris-Dauphine.
European countries such as Ireland, which lured Apple and Google to set up European bases with the possibility of lowering effective tax rates to practically nothing, would have a windfall of revenue if they join the reform.
But that is only if these companies stay and continue to book their profits there.
Countries such as the Netherlands, Luxembourg and Switzerland are in a similar boat.
"Beyond the impact on public finances, it is clear that the reform process could affect these countries' economies and employment, particularly if multinationals relocate profits and investments as a result," said economist Ricardo Amaro at Oxford Economics.
In 2018, about a third of the profits of US multinationals were booked in the Netherlands, Ireland and Luxembourg, although these countries only accounted for 5 per cent of their sales, said Mr Amaro.
But Ireland, which has invested heavily in recent years in information technology infrastructure and education, and become a centre for the pharmaceutical industry, would probably keep many multinationals even if it raised rates.
"Certainly, the shell companies will leave but the production base will stay as Ireland has other advantages. They speak English, it is part of the immense European market, etc," said Mr Toubal.
Non-governmental groups, such as Oxfam, that analyse tax optimisation strategies used by multinationals have criticised the OECD-brokered deal for letting rich countries keep most of the additional tax revenue.
"The world's poorest countries will recover less than 3 per cent – despite being home to over a third of the world's population," Oxfam International's executive director Gabriela Bucher said.
But the draft deal that emerged at the beginning of July does contain some sweeteners for emerging nations.
They will benefit from the measures that redistribute some tax revenue to countries where profits are generated.
Developing countries will also be able to maintain some tax incentives to lure in manufacturing, although the details have yet to be agreed.
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
How to get exposure to gold
Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.
A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.
Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.
Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.
London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long
However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.
Kat Wightman's tips on how to create zones in large spaces
Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
Use a considered collection of prints and artworks that work together to form a cohesive journey.
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
Essentials
The flights Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes. The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast. The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
