The Organisation for Economic Cooperation and Development (OECD) announced that in the future Apple and other companies will have to pay taxes in each country they sell products and services in (via Reuters).
No Dutch Sandwich For You
Apple is credited for inventing a tax strategy called “The Double Irish with a Dutch Sandwich.” This is where a company sends profits through an Irish company, then a Dutch company, then to tax havens in the Caribbean in order to avoid paying taxes elsewhere like the United States or European Union.
Over 130 countries and territories want practices like this to stop and asked the OECD to come up with a plan. Under the plan, if a company sells products in a country, the government will have a right to a bigger share of the profit. Tax havens and countries like Ireland could suffer, but countries with big consumer markets like the United States would benefit.
Next week finance ministers from the Group of 20 economic powers will discuss the plan at a meeting in Washington. If all goes well an outline agreement to the countries that have signed up will be created in January 2020.