The German parliament on Friday approved the implementation of a global minimum corporate tax, as part of an international deal to ensure large companies pay a minimum tax rate of 15%.

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.

  • fiat_lux@kbin.social
    2·
    1 year ago

    Understood! Thanks for the detailed insight, I appreciate it. I have witnessed business excess but I’m not in the financial professions, so the exact mechanics of how they get away with it were somewhat opaque to me. Breaking it up into small invoices across multiple companies and payments makes perfect sense though.

    It’s also nice to know there are accountants who take this seriously enough to personally check.

    • frog 🐸@beehaw.orgEnglish
      2·
      1 year ago

      No problem! :)

      I think there genuinely is an issue where large businesses just aren’t checked as thoroughly as small ones. It’s much easier to check every invoice over X when there’s only a few thousand invoices, compared to when there’s millions or even hundreds of millions of invoices. There’s also the fact that the value of X varies based on the size of the business. I had a few really tiny clients where X was 10, because for the size of the business and the revenue they did, 10 was significant. There were others where X was 1000. Obviously at both of those thresholds, a gold toilet is going to stick out - and for the tiny business, would probably also trigger a money laundering/fraud report (no accountant-client confidentiality when financial crimes are being committed. This is another area where the big firms are given a lot of leeway that small ones are not).

      So I can definitely see how for a megacorporation, the auditor may well conclude that no invoice for less than 1,000,000 is worth the effort of looking at, and it becomes quite easy to start sneaking through those gold toilets on <1,000,000 invoices if you know the auditor isn’t going to look at them.

      As much as I have my doubts about AI, I think accountancy and audit is one of those professions where it could be a useful tool. If an AI could run through all the invoices and just flag the ones that look weird, regardless of value, for a human to take a closer look at, it would make a measurable difference - assuming a sufficiently unbiased and correctly trained AI, of course!