A new report from the Tax Justice Network indicates that countries could potentially gain an additional $500 billion each year by taxing multinational corporations based on where their economic activities occur, rather than where profits are reported. This approach, known as unitary taxation, aims to redirect revenue from tax havens to the countries where workers and consumers are located.
Upcoming UN negotiations in New York are set to discuss establishing a global tax framework modeled after climate agreements. The success of these talks could lead to significant changes in how multinationals are taxed, benefiting both wealthy and developing nations, as countries seek to reclaim tax powers lost to globalization.