September 23, 2021 | Global Minimum Tax: Possible International Agreement and Its Challenges
In this episode of Taxing Issues, our panelists will examine the recent breakthrough in discussions over a global minimum tax. In July, 130 countries agreed to a framework including a minimum corporate tax rate of 15 percent. The OECD intends to unveil the detailed plan at their meeting next month in Rome. The framework aims to increase taxes paid by multinationals in jurisdictions where profits are earned, helping countries generate more revenue and addressing tax avoidance. But hold outs like Ireland, Hungary, and Estonia could undercut the agreement’s effectiveness. What challenges will the jurisdictional approach face? Can all countries agree and end the 40-year race to the bottom? And how will U.S. businesses and lawmakers react?
ABOUT THE SPEAKERS
President and CEO, Tax Analysts
As the moderator for our Taxing Issues webinars, Cara objectively analyzes issues and asks probing questions that challenge panelists to explain and defend their positions.
When she’s not moderating Taxing Issues webinars, Cara provides strategic oversight for Tax Analysts. She has led efforts to improve the Tax Notes suite of products and to aggressively pursue transparency in the administration of tax systems. Previously, Cara managed the editorial department, including the flagship daily news publications and weekly magazines. She has written for a broad range of tax policy publications, including Tax Notes State, The Tax Adviser, The Hedge Fund Law Report, and The Hill. She regularly speaks at tax conferences and other events, discussing a variety of technical tax issues as well as the need for transparency in tax administration.
Cara has a BA in political science and a BA in international studies from the University of Evansville and a JD from the George Washington University Law School.
Counsel for the Taxation and Mergers and Acquisitions Practices, Potomac Law (D.C. office)
Mindy Herzfeld is of counsel for the Taxation and Mergers and Acquisitions Practices at the Washington, DC office of Potomac Law.
Ms. Herzfeld specializes in cross-border taxation, and has experience advising both public and private clients in complex international acquisitions, dispositions, and joint ventures. She also regularly consults with clients on international tax policy developments.
Ms. Herzfeld is a Professor of Tax Practice at the University of Florida, Frederic G. Levin College of Law, where she teaches courses in tax policy and international taxation for LL.M students. Since 2014, she has been a Contributing Editor to Tax Notes International, a weekly magazine on tax developments published by Tax Analysts. In that capacity, she has written over 250 articles on international tax policy developments and cross-border transactions and has also written extensively on U.S. tax reform efforts. She is the author of the bestselling introduction to the field, International Taxation in a Nutshell, 12th ed. (West 2020).
Previously, Ms. Herzfeld worked at the national tax office and the New York office of a Big 4 accounting firm, where she provided transactional advice to U.S. and foreign multinational corporations, private equity funds, venture capital funds and individuals on a broad range of U.S. and cross-border tax issues. She began her career in the New York office of a global law firm and has also worked as in-house tax counsel at a large automotive manufacturing company.
Ms. Herzfeld received her J.D. from Yale Law School and her LL.M. from Georgetown University Law Center.
L.G. "Chip" Harter
Senior Tax Advisor, PwC
He served the Department of the Treasury as Deputy Assistant Secretary of Tax Policy for International Tax Affairs from September 2017 through November 2020.
As Deputy Assistant Secretary for International Tax Affairs, Mr. Harter was responsible for all international tax matters at Treasury. He played a central role in representing the Treasury in the legislative process for the Tax Cuts and Jobs Act (TCJA), which was signed into law in December 2017. Mr. Harter then led the development and issuance of an integrated set of regulations to implement the new international provisions of the TCJA, including regulations to implement the Global Intangible Low Tax Income (GILTI) regime, the Base Erosion Anti-Avoidance Tax (BEAT), and the Foreign Derived Intangible Income (FDII) regime.
Mr. Harter also represented the United States in tax negotiations at the Organisation for Economic Cooperation and Development (OECD). At the OECD, he led the efforts to revise long-standing international tax rules that provide for the allocation of taxing rights over multinational businesses, representing the United States in negotiations over the designs of the Pillar 1 and Pillar 2 proposals.
In recognition of these services, Mr. Harter was awarded the Treasury Medal.
Prior to joining the Treasury, Mr. Harter served for 18 years as a principal in the Washington National Tax Service of PwC. Prior to joining PwC, Mr. Harter served 18 years, first as an associate and then as a partner, with the international law firm of Baker& McKenzie. He is a member of the District of Columbia Bar.
Director Business and International Tax, HM Treasury
Mike Williams is Director Business and International Tax at HM Treasury.
As such he is responsible for corporation tax, capital gains tax, value added tax, other consumption taxes, international tax and environmental taxes. His main tax expertise is in international tax and banking.
Mike is the UK delegate to the OECD’s Committee on Fiscal Affairs, Chair of the ad hoc group to create the BEPS multilateral instrument on tax treaty measures, and is also a member of the Steering Group of the Global Forum on Transparency and Exchange of Information for Tax Purposes.
Among previous posts, Mike was:
- Director Personal Tax and Welfare Reform at HM Treasury from January 2008 to March 2010. This involved responsibility for income tax, social security contributions, inheritance tax, tax credits, savings and pensions and social security benefits;
- Director International Tax at HM Treasury from July 2004 to January 2008. As such he was responsible for cross-border aspects of direct and indirect tax, including VAT, and for the conduct of and responses to tax litigation before the European Court of Justice;
- Deputy Director, International at the Inland Revenue from 2001 to 2004, with responsibility for business tax, in which role he was Competent Authority under the UK’s tax treaties.
Mike has a degree in physics from Balliol College, Oxford.