Four tax specialists concurred with Reuters’ methodology but noted that there is still uncertainty about how the measures would be applied, including which tax breaks are included in the 15% minimum overseas tax.
Applying the same methodology to J&J, and its 2020 global profits of $16.5 billion, the healthcare company would see its global tax bill rise by about $270 million as a result of the first measure.
Also at issue is which country the profit is moved from and to - and therefore what the increase in tax rate is.
Excluding the impact of the first proposed measure, increasing the tax rate on overseas income to 15% would mean $45 million of additional tax.
Applying a 15% tax rate to that overseas income figure would result in $990 million in additional taxes, according to Reuters’ calculations.
Rishi Sunak, Stefan Rousseau, Johnson, José Castañeda, ”, “
Lancaster House, Reuters, Google, Inc, UK Treasury, Organization for Economic Cooperation, Thomson
London, Britain, U.S, United States, Canada, France, Germany, Italy, Japan, United Kingdom, Paris, Bermuda