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July 25, 2022

Tracking Down Big Tech’s Tax Avoidance

In an article detailing online retailing giant Amazon’s strategy to limit taxable profits in Canada, Research Director Shigeki Morinobu tells Canada’s Globe and Mail that the 2021 OECD agreement to establish a minimum corporate profit tax rate of 15% is being watered down “far from the original discussion.”

Japan’s own attempt to thwart Amazon’s profit-shifting strategy may not have been effective, he adds, since there has been no confirmation that the $119-million in back taxes ordered by the National Tax Agency in 2009 has actually been paid.

The NTA has similarly been unable to collect penalties from Google, Morinobu said, which shifted royalty payments from Japan operations to Singapore, considered a tax haven.

“Inside Amazon’s strategy to shield its profits from Canadian taxes,” The Globe and Mail
https://www.theglobeandmail.com/business/article-amazon-taxable-profits-canada/

Profile of Research Director Shigeki Morinobu
https://www.tkfd.or.jp/en/experts/detail.php?id=8

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