World

Can new EU corporate tax rules make big business pay its fair share?

Published

2 years ago

January 7, 2024

Can new EU corporate tax rules make big business pay its fair share?

A landmark global deal setting a minimum corporate tax rate of 15% on multinational companies came into force in the European Union on 1 January.

The EU has for years tried to flex its muscles on corporate tax evasion by introducing a raft of new laws and lodging high-profile court cases against multinationals.

But some of its own member states – such as Ireland, Luxembourg and Cyprus – have continued to allow high-profit companies to dodge both taxes and scrutiny. Profit shifting worldwide has also remained high, causing losses worth billions of euros for the continent while economic inequality deepens.

Now, companies with revenues of at least €750 million active in any of the 27 EU states will face a minimum corporate tax rate of 15%. The bloc’s economy commissioner Paolo Gentiloni described the new year rules as “a new dawn for the taxation of large multinationals”.

The move is part of a sweeping overhaul of the global tax system agreed by some 140 Organisation for Economic Co-operation and Development (OECD) countries in 2021 after a decade of negotiations, and aims to crack down on governments that slash their corporate tax bills to attract investment.

Other countries such as the UK, Norway, Australia, Japan and Canada are also implementing the measures.

While the new interlocking rules have been hailed as groundbreaking, experts told Euronews there is a need to close crucial loopholes to ensure big business is held accountable.

A ‘revolution’ in tax justice

The OECD deal consists of two pillars, the first of which aims to ensure companies pay tax where they do business. The second pillar sets the global minimum tax rate of 15%.

In an interlocking system hailed revolutionary, if one country fails to tax a multinational at this rate, other countries can charge a so-called “top-up tax”.

This does not mean EU countries will necessarily adjust their corporate tax rate to the 15% baseline, since other countries will be able to step in to collect the taxes due from multinationals that pay their levies in low-tax jurisdictions.

This means that in a hypothetical scenario, a French multinational operating in Senegal and shifting its profits to Ireland could see either France or even Senegal charge a top-up tax if it doesn’t pay the minimum rate of 15% in Ireland.

“The concept is revolutionary,” according to Quentin Parrinello, a senior policy adviser at the EU Tax Observatory.

“It’s the first time we have more than 140 countries, including all major economic actors, agree that multinational companies should pay a minimum amount of tax on the profits it reports.”

“There is, in theory, no incentive for a country not to apply the minimum tax because if they don’t, another country will get the tax revenues,” Parrinello added.

Most EU countries have already transposed the EU Directive – that makes the new rules a reality – into law. Five countries – Estonia, Latvia, Lithuania, Malta and Slovakia – have informed the European Commission that they will delay implementation as they have fewer than twelve affected multinationals operating within their borders.

Too many loopholes

But despite its promise, experts fear the reform alone cannot stamp out tax havens or prevent a so-called ‘race to the bottom’ of harmful tax competition between governments.

States can still abide by the new minimum rate whilst offering generous tax credits and other deductions that effectively reduce the tax rate below 15%. Many states are already introducing attractive transferable credits, grants and subsidies to compete for investment.

“We already see this, for example with the IRA (Inflation Reduction Act) in the US. We also have countries such as Ireland, Switzerland, and the Caymans already thinking of their own systems,” Parrinello explained.

Another loophole in the deal allows firms to exclude certain amounts of profits – equal to 8% of the value of tangible assets and 10% of payroll in the first year – from the tax base.

The EU Tax Observatory estimates that this loophole could cost the EU some €26 billion in its first year of implementation. A loophole-free 15% minimum tax could have raised around $95 billion (€87 billion) in the bloc in 2023, the watchdog says, dropping to just $67 billion (€61 billion) with the current design.

“There will not be an end to harmful tax competition and the race to the bottom on taxation,” Chiara Putaturo, Inequality and Tax Policy Advisor at Oxfam’s EU office, said.

“We are seeing a lot of countries like Ireland, Switzerland and also Bermuda changing some of the tax systems they had before to introduce generous refundable tax credit so that they will still be able to have a lower and lower tax rate,” she added.

“The minimum tax is a floor,” Parinello said. “It’s much better to have a floor than nothing. But if you drill holes in the floor, you weaken the overall structure.”

World should move in lockstep

The OECD-designed system is unique in the way it incentivises all world nations to move in lockstep. Countries infamous for attracting giant companies with attractive tax incentives – such as Barbados and Panama – are also signatories.

An overwhelming majority of Swiss voters (78.5%) also backed the new rules in a consultation last June, putting pressure on their government to swiftly adopt the rules.

The US and China have not yet passed the necessary legislation but are likely to be incentivised to do so to ensure other countries do not top up their own tax collections at their expense.

But Putaturo warned that the 15% rate, which is lower than the global average, lacks ambition.

“The majority of countries, globally, have an effective tax rate which is higher than 15%. So this could even bring some countries to lower their tax rate, in a race to the minimum rather than a race to the bottom,” Putaturo explained.

“The minimum tax also does almost anything in terms of the redistribution of tax revenues. The so-called resident countries, where multinationals are headquartered, will have the right to top up the tax to 15% if the tax haven does not collect the tax due. This is a problem for poorer countries because the resident countries are mainly rich countries,” she added.

Click to comment

World

2 people killed in collision between jet and vehicle at New York’s LaGuardia Airport, source says

Published

4 hours ago

March 23, 2026

Press Room

2 people killed in collision between jet and vehicle at New York’s LaGuardia Airport, source says

NEW YORK (AP) — An Air Canada regional jet struck a fire truck on the runway after landing at New York’s LaGuardia Airport late Sunday night, crushing the nose of the plane, according to authorities and photos of the wreckage.

Two people were killed, according to a person familiar with the investigation into the crash. The person spoke to The Associated Press on condition of anonymity because they were not authorized to discuss an active investigation.

Two Port Authority employees who were traveling in the fire truck also were injured, the person said.

There were 72 passengers and four crew members aboard the aircraft, a Jazz Aviation flight operating on behalf of Air Canada, according to a statement from the airline. The flight originated at Montréal-Pierre Elliott Trudeau International Airport, the major airport serving Montreal.

The Port Authority of New York and New Jersey said in a statement that the jet had struck a rescue and firefighting vehicle that was responding to a separate incident at about 11:45 p.m. The airport was closed as of 3 a.m. to facilitate the investigation, officials said.

Photos and videos from the scene showed severe damage to the front of the aircraft, with cables and debris hanging from a mangled cockpit. Nearby, a damaged emergency vehicle lay on its side.

Stairways used to evacuate passengers from aircraft were pushed up to the emergency exits on the jet, a Bombardier CRJ. The impact left the jet with its crumpled nose tilted upward.

In the moments before the crash, an air traffic controller could be heard on a radio transmission giving clearance to a vehicle to cross part of the tarmac, then trying to stop it.

“Stop, Truck 1. Stop,” the transmission says. The controller can then be heard frantically diverting incoming aircraft from landing.

Jazz Aviation issued a statement confirming the accident and noting the passenger and crew list was preliminary and subject to confirmation.

The National Transportation Safety Board said it was investigating the incident.

World

Trump, Starmer agree Strait of Hormuz must reopen as Middle East conflict escalates

Published

5 hours ago

March 23, 2026

Press Room

Trump, Starmer agree Strait of Hormuz must reopen as Middle East conflict escalates

NEWYou can now listen to Fox News articles!

President Donald Trump spoke with British Prime Minister Keir Starmer on Sunday to discuss escalating tensions in the Middle East, with a focus on the urgent need to reopen the Strait of Hormuz and restore global shipping.

The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping, Downing Street said in a statement.

STEALTH BOMBERS LANDING AT UK BASES ‘IN DAYS’ AFTER TRUMP PRESSURES STARMER: REPORT

Keir Stamer, UK prime minister, during a news conference providing an update on the situation in the Middle East, at Downing Street in London, UK, on Thursday, March 5, 2026. (Tolga Akmen/EPA/Bloomberg via Getty Images)

“They agreed that reopening the Strait of Hormuz was essential to ensure stability in the global energy market. They agreed to speak again soon.”

The call came amid a rapidly intensifying conflict in the region, with Iran blocking the strategically vital strait since the United States and Israel launched coordinated strikes against Iranian targets on Feb. 28.

The military action triggered swift retaliation from Tehran and has since escalated into a broader regional war as Iran has sent missiles into numerous neighboring countries not directly involved in the initial conflict.

UK NUCLEAR SUBMARINE DEPLOYED TO ARABIAN SEA BEFORE IRAN TARGETS KEY US-UK BASE: REPORTS

President Donald Trump takes questions from reporters during a meeting with Irish Prime Minister Micheál Martin in the Oval Office of the White House, on St. Patrick’s Day, Tuesday, March 17, 2026, in Washington. (AP Photo/Alex Brandon)

On March 21, Trump issued a 48-hour ultimatum to Iran demanding the reopening of the key maritime route, through which approximately 20% of the world’s oil supply passes.

In a post on Truth Social, Trump warned that failure to comply would result in further U.S. action, including potential strikes on Iran’s energy infrastructure.

EU PUSHES FOR END OF IRAN WAR IN A MANNER WHERE ‘EVERYBODY SAVES FACE’

Bulk Carrier, Belray, in the Gulf, near the Strait of Hormuz on March 22, 2026 in northern Ras al Khaimah, United Arab Emirates. (Getty Images/Getty Images)

Sunday’s conversation between Trump and Starmer perhaps reflected a thaw in the tense relationship between the two leaders.

Trump had publicly criticized the U.K. government, stating that Britain “should have acted a lot faster” in allowing the U.S. to use British military bases for strikes targeting Iranian missile sites.

Starmer had also maintained that the use of U.K. bases could only be justified under the principle of “collective self-defense” in the region.

He had initially declined to support the U.S.-Israeli military operation, drawing repeated criticism from the White House.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Meanwhile, Trump appeared to apply public pressure, sharing a “Saturday Night Live” clip Sunday mocking the British prime minister’s handling of the crisis.

Emma Bussey is a breaking news writer for Fox News Digital. Before joining Fox, she worked at The Telegraph with the U.S. overnight team, across desks including foreign, politics, news, sport and culture.

World

French elections: Paris stays left as far right makes mixed gains

Published

6 hours ago

March 23, 2026

Press Room

French elections: Paris stays left as far right makes mixed gains

France’s municipal runoff delivered a mixed verdict for the country’s main political forces on Sunday: the Left held Paris with Socialist Emmanuel Grégoire, the far-right and its allies scored a major symbolic win in Nice, and mainstream parties pointed to resilience in several big and mid-sized cities ahead of the 2027 presidential race.

Municipal elections in France are local contests to elect mayors and local councils, but they are closely watched because they test party organisation, alliance-building, and grassroots strength before national campaigns begin.

In the capital, Socialist Emmanuel Grégoire defeated conservative rival Rachida Dati, ensuring Paris remains under left-wing control after outgoing mayor Anne Hidalgo chose not to seek another term.

The result extends a quarter-century of left-led rule of the capital and hands to the Socialists one of the most visible prizes of the night. Grégoire presented the result as a mandate for a progressive vision of the city.

Elsewhere, the left also had reasons to celebrate. In Marseille, Socialist incumbent Benoît Payan was re-elected after the far right had hoped to seize France’s second-largest city.

While in Lyon, Green mayor Grégory Doucet held on after a hard-fought race against his conservative rival, which was reshaped by a last-minute merger with the list of hard-left party France Unbowed.

Socialists record strong showing

The Socialists also held or performed strongly in several regional cities, reinforcing the impression of a broader recovery for the traditional left.

For the far right, the picture was more complex. National Rally (RN) leader Jordan Bardella hailed what he called the party’s biggest local breakthrough, and RN kept the southwestern city of Perpignan while also winning smaller municipalities.

But the party fell short in several of the larger cities it had targeted, notably Marseille, Toulon and Nîmes. The exception was Nice, where Éric Ciotti — once a senior figure in the mainstream right and now allied with RN — won the race, giving the far right and its partners control of France’s fifth-largest city.

The elections also brought clearer signs of fragmentation on the centre-right and in President Emmanuel Macron’s camp.

Former prime minister Édouard Philippe was re-elected in Le Havre, strengthening his standing as a possible 2027 contender, while Macron’s centrist forces could point to a symbolic win in Bordeaux, where Renaissance candidate Thomas Cazenave defeated outgoing Green mayor Pierre Hurmic.

At the same time, the loss of Macron’s former PM, François Bayrou, in southwestern Pau, underlined the vulnerabilities of the broader presidential alliance.

Turnout remained a concern. According to the Interior Ministry, participation in mainland France stood at 48.1% at 5 p.m., higher than the Covid-disrupted 2020 election but still below pre-pandemic levels.

Taken together, the results do not predict who will succeed Macron in 2027. But they do sketch the political landscape from which that contest will emerge: a left that can still win major cities, a mainstream right that remains locally entrenched, a centre searching for durable footholds, and a far right that is growing but may still face limits in the country’s biggest urban battlegrounds.