On Wednesday, Liz Truss will use the Margaret Thatcher memorial lecture in Washington to call the Organisation for Economic Co-operation and Development (OECD) a “global cartel of complacency” whose high tax policies are holding back growth. I fear she is right.
In particular, Ms Truss will warn against the OECD’s plan for a minimum 15 per cent corporation tax rate for multinational companies, which is due to come into effect at the start of 2024. This plan is both wrong in principle and will be very hard to operate in practice.
To recap, 138 countries have now signed up to a global agreement which is designed to ‘modernise’ the international tax system. The main target is ‘profit shifting’, where companies book profits in jurisdictions where tax rates are lower.
This agreement has two elements, or ‘Pillars’. Under ‘Pillar 1’, the largest and most profitable multinationals will be required to pay…
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Utopia, you are standing in it! 
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