Multinationals and Tax Payments

Over the last few weeks and months we have heard a lot about the fact the Multinational Corporations use lower corporation rate counties to pay less in tax on their profit. I think the best way forward is to get rid of the IMF and the OECD and create one body to manage the banks and multinational corporations.

The biggest advantage of this idea is the payment of tax to all the counties where the corps have operations or bases. The amount paid should depend on how much of their profits came from the different countries eg if corp x made £200 million profit in one country they should pay 20 million in tax, but if the same corp made 2 million in another country then they should 200,000. This way each country gets a tax payment and they, the corps, cannot dodge their responsibilities.

The banks on the other hand, and i am talking about all banks including the central ones, should be regulated by one set of rules not by god knows how many sets. It would make it easier to police as it would mean every banker knows the rules and does not have to worry about doing something legal in one country and it is illegal in another, (see the US hitting banks for doing what is their jobs).

Another aspect would mean the corps no longer can transfer money from one country to another to lower their profits as any money transfers would be logged by the bank and then should the profits or the money transfer not be listed correctly, oops they get fined.

Funding, the make-up of the central board, and the rules are a problem, but the central concept actually comes from my novels in that their exists exactly this plan. I am more than happy to advise if it every gets picked up by those in power.

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