The Global Minimum Tax | Selected Issues on Pillar Two

S. 5981. Introduction

1.1. Abstract

The output of this chapter will define “Who is the taxpayer?” specifically under the application of the income inclusion rule (IIR) and the under taxed payment rule (UTPR) charging mechanisms of the model rules. For such fundamental question, a taxpayer definition is established (section 2.) including: an analysis to define the type of tax introduced by Pillar Two, concluding that it is a tax on income (section 2.1.); a general definition of “taxpayer” (section 2.2.); the justifications for corporate income tax (section 2.3.) further builds a refined - principled based - definition (section 2.4.), as well as an overview of the “separate entity” and the “enterprise” (or “unitary taxation”) doctrines (section 2.5.) by which their distinct views on taxing multinational corporations assist the taxpayer examination in subsequent section 3. Furthermore, the - taxpayer - evidence in the model rules is examined for the answer to the fundamental question (section 3.). This is approached by discussing the IIR and UTPR interplay and how their common tax base and definition of taxes admits, to some extent, a common taxpayer analysis (section 3.1.) and with an examin...