Q. With reference to ‘Global Corporate Minimum Tax’ consider the following statements:
1.It aims to discourage nations from tax competition through lower tax rates that result in corporate profit shifting and tax base erosion.
2.The tax will help in counter rising global inequality.
3.It will prevent the unilateral imposition of domestic laws by the developed world over the developing countries.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: D
Notes:

Explanation –

Statement 1, 2 and 3 are correct. Global Corporate Minimum Tax aims to discourage nations from tax competition through lower tax rates that result in corporate profit shifting and tax base erosion. The tax will help in counter rising global inequality by making it tougher for large businesses to pay low taxes by availing the services of tax havens. It will prevent the unilateral imposition of domestic laws by the developed world over the developing countries.

Source: ForumIAS