“Paying taxes in the source country.” The O.E.C.D. presented its post-Offshore Leaks report on 19 Jul 2013 and announced it wants to enact new rules forcing companies to pay taxes in the countries where the income is earned, disallowing the currently not-illegal practices that shift income to low-tax countries. The G20 countries supported this plan. A “golden era” of “tax arbitrage” may be ending.
Update on 06 Sep 2013: World leaders at the G20 summit in St. Petersburg agreed that in future corporate income will be taxed in the country where it is earned. It will no longer be possible to schubs income around the world, shopping for lower-tax jurisdictions.
(Imm KVELL en lont SHTOY ahn TSOLL en.)