NETHERLANDS - Push for Global Tax Gains Momentum

K. Farmer

The Netherlands, long considered to be at the heart of a system in which multinational corporations minimize their taxes by shifting profits, has signaled that it’s ready to support a U.S. proposal that ends the practice.

In one example in 2019, San Francisco-based Uber Technologies Inc. responded to a European crackdown on offshore tax havens by creating a $6.1 billion Dutch deduction to help it reduce a chunk of its global bill for years to come.

The Tax Justice Network this year labeled the country the world’s fourth-biggest tax haven after the British Virgin Islands, the Cayman Islands and Bermuda.

U.S. President Joe Biden’s administration has proposed combating such tax-reduction strategies with a global minimum tax rate of 21%, and a system for ensuring that the world’s 100 or so biggest companies pay more in places they actually do business.

Vijlbrief said he expects a deal by July. That’s in line with the aims of the U.S. and the other members of the Organization for Economic Cooperation and Development, which has been trying for years to get its more-than 135 members to agree.

It would also require the assent of other small nations such as Ireland and Luxembourg that have used competitive taxation to attract business.

“If you ask me, this is not the business climate you want to pursue,” Vijlbrief said. “It damages the tax climate and political morals in a country. If you want people to pay their taxes, big companies must do so too.”

-www.bloomberg.com, 20 April 2021

Commentary

This is a prime example of how globalism can assist in achieving a more equitable society; in this case, clamping down on corporations that dodge paying their fair share of taxes. It is of interest that the Netherlands is cooperating on this front, considering they were one of the biggest tax havens. Barriers to change are lifting in more and more nations, as they see the writing on the wall for doing things the old, unscrupulous way. 

What this proves is that there are positives to globalism, as nations working together to fight corruption in the tax system is a good thing. The danger lies in man becoming more and more comfortable in his virtue apart from Christ. The only hope for humanity is in Him, as this world is destined for destruction. What a comfort to know that one’s future is eternally secure: “And we know that all things work together for good to them that love God, to them who are the called according to his purpose” (Romans 8:28). (By K. Farmer)

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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