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Germany approves global minimum corporate tax (www.reuters.com)

submitted 1 year ago by sqgl@beehaw.org to c/news@beehaw.org

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Multinational firms will have to pay a minimum of 15% tax on all of the profits they make worldwide, regardless of where the profits are generated.

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[–] upstream@beehaw.org 2 points 1 year ago* (last edited 1 year ago)

Plenty of known loopholes for tax avoidance.

Used to work for a company that made killer profit, but 85-90% of it was funneled to the parent company to pay for the leverage of the PE investors who bought the company for 10x their EBITDA. Say we made 100 million EBITDA, the official result was around 10-15 million, and was the basis for our taxation.

All this money was paid as various fees and licenses and was calculated into the budget the year before. We had specific goals that we needed to hit and, and bonus payment was based on these goals. Our collective bonuses was a drop in the ocean compared to the result of the company.

The parent company in Germany then had at least three levels of holding companies, all incorporated in Luxembourg, between them and the owners.

Was a fun place to work when we got sold as suddenly there were som extra rounds of bonuses to go around as carrots for us to stay on during the sale, and even more stay-on bonuses for those who staid on after the sale.

According to my boss at the time - the perk of being in a PE backed company.

Wouldn’t be surprised if they’re up for sales again next year.