ICRICT highlights flaws in current rules for taxing cross-border services, which let multinationals avoid paying their share and deprive, especially, Global South countries of revenues. It critiques the OECD’s “Pillar One” as inadequate and unworkable, and instead urges a UN protocol to consider withholding taxes on gross payments or formulary apportionment for taxing the profits of multinationals from cross-border services; recommends that taxing rights be allocated based on the location of real economic activities, sales, and data extraction to minimize profit shifting; and calls for greater transparency through public country-by-country reporting.
