Aidan Regan: The dethroning of global tax sovereignty — and why it’s a good thing for Ireland

Governments will soon have the right to collect taxes on multinationals’ sales in their jurisdiction, even if that company has no physical presence in their country. This is a massive shift — and is ultimately positive for us

In Ireland, the concept of “tax sovereignty” has been used to legitimise the state using corporate taxation as a means to attract global investment from multinationals such as Facebook. Picture: Brian Lawless

The G7’s endorsement of a global minimum corporate tax rate of at least 15 per cent made all the headlines last week. The move was heralded as revolutionary and groundbreaking.

What was perhaps most historically significant, however, was the political endorsement of the G7 to put an end to the practice of allowing nation-states to only tax businesses in their own country.

After more than one hundred years, governments will soon have the right to ...