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STUDIO TALK
Updated: 2021-10-20 08:59:56 KST
EARLIER this month 136 countries agreed to COMPREHENSIVE CHANGES to the INTERNATIONAL TAX SYSTEM that will LEVY a 15-percent MINIMUM TAX RATE on SOME multinational enterprises to PREVENT them from KEEPING PROFITS in LOW-TAX countries.
Now related talks were also held last week in Washington during the G-20 Finance Ministers and Central Bank Governors Meeting which Seoul's Finance Minister Hong Nam-ki attended.
I have Professor Song Soo-young … from Chung-Ang University.
It's good to see you… again… Professor Song.
I also have Professor Cho Hee-kyung … from Hongik University.
It's a pleasure to have you back… Professor Cho.

1) Professor Cho… let's begin… with… some background information… behind… this landmark approach… to global tax reform… amid the dramatic economic changes… brought on… by both globalization and digitalization.

2) Professor Song… to offer our viewers a better understanding about the importance of the planned digital tax… could you… perhaps… take… Google… and… Korea's Naver… as examples… to compare their sales revenue… here in the country… and their related taxes?

3) Professor Cho… what changes are we likely to witness… in the wake of this global tax reform… which is expected to go into effect… by the year 2023?
((The move… allows… countries to tax some of the earnings of companies located elsewhere… but make money… through online retailing… web advertising… and other activities… within their boundaries. ))

4) Professor Song… do tell us… a bit… more… about the companies… that are likely… to be affected… by this unified approach… to taxation?

5) Professor Cho… despite… the overall consensus… among the 136 nations… I understand… there are many technical and implementation issues… that remain unresolved.
Do you care to elaborate?

6) Professor Song… what is the potential impact… of this global tax plan… on the local economy?
((The move will re-allocate over 1-hundred-25 BILLION U.S. dollars… of profits… from some 100 of the globe's largest and most profitable companies… to countries… worldwide.))

7) Professor Cho… to ease… the tax burden on Korean companies… local authorities are looking… to expand corporate tax incentives… for those… who face… hefty taxes… abroad.
What are your thoughts?

8) Professor Song… some pundits fear… that… digital tax levied on companies… may result… in higher service prices… on consumers.
What are your thoughts?

9) Professor Cho… there is also talk… that… this latest reform… to address… tax challenges… arising from… the digitalization of the economy… is simply the first of many more changes… to come.
Do you agree?

10) Professor Song… how do you respond to concerns… that… the planned tax reform… may… hamper… a company's global ventures?

11) Professor Cho… leaders… attending the G-20 summit in Rome… late this month… are slated to approve… this global tax scheme… and its implementation… by the year 2023.
Having said that… what are some of the crucial tasks ahead… to pave the path… to its actual implementation?

All right
Reporter : sunnymin@arirang.com