Juan Francisco Rodríguez has drawn my attention to an interesting comment by Norton Rose and Mattheu Hodkin published on Lexology: Ethical taxpaying: how does a company ascertain the “right amount of tax”? I will elaborate on it sharing some ideas of Juan Francisco.
According to the authors “Tax has been much in the news recently. This is not the first time that tax has risen to the top of the political agenda but now public mood has shifted towards the idea that people [particularly multinational companies should be paying more tax”.
If Juan Francisco and I have understood it correctly, the idea is not that legal reforms (including reforms of Double Taxation Conventions) should be implemented, but that tax authorities should negotiate with multinational companies how much is the “right amount of tax” determined by social perceptions.
Such an idea is really dangerous, not so much for multinationals, but for SMS businesses and all kind of “ordinary” taxpayers. The “right amount of tax” must be determined by the democratic legislator along the lines of the ability to pay principle and must be assessed in accordance with the rule of law.
Many thanks, dear Juan Francisco, for your interesting viewpoints.