Global Taxation Framework To Be In Place By End Of 2024  

• A global tax collection framework could be in place by the end of 2024. Speaking at a forum at the DunnCox Law firm, Finance Minister Dr. Nigel Clarke said, as the agreement is being finalised, countries could begin signing on to the treaty as soon as this quarter.
• 138 countries have agreed in principle and the multilateral convention that will give legal effect to these arrangements. The treaty will be open for signing in September and countries will have through all of 2024 to sign this treaty.
• He noted that this period is required as countries must ensure that aspects of their domestic legislation, which in some cases may be thousands of pages long, are compatible with the treaty details. With globalisation opening opportunities for several firms to earn in multiple territories, this has caused some taxation concerns.
• There has however been some global consensus on how to address this, with the Pillar One solution created through the Organization for Economic Co-operation and Development (OECD).
• Clarke explained that the solution calls for about 87 global companies, who are in 'scope'. On an annual basis, there will be a mechanism to reallocate the taxing rights and the profits that they generate globally to all countries around the world. Once accepted, more than US$200 billion in tax revenues could be distributed to signatories across the world, from several multi-national firms. 
• However, there are concerns as the proposed changes could negatively affect small and developing countries, as some states which offer a lower tax rate to attract investors, may lose their appeal.

(Source: RJR News)