Understanding the Composition of Wealth and Taxation Practices of Global Corporations
Giorgi Rusiashivili (GE) spoke about “Understanding the Composition of Wealth and Taxation Practices of Global Corporations and how the multinationals use corporate tax planning strategies to "shift" profits from higher-tax jurisdictions to lower-tax jurisdictions or no-tax locations (see appendix).
Understanding the Composition of Wealth and Taxation Practices of Global Corporations
Giorgi Rusiashivili (GE) spoke about “Understanding the Composition of Wealth and Taxation Practices of Global Corporations and how the multinationals use corporate tax planning strategies to "shift" profits from higher-tax jurisdictions to lower-tax jurisdictions or no-tax locations (see appendix).
The OECD's global minimum tax proposal, known as Pillar Two, aims to impose a 15% minimum corporate tax rate on multinational companies with revenues exceeding €750 million. As of early 2025, over 140 countries had agreed to the framework, with approximately 40 jurisdictions implementing it. Notably, the United States, under President Donald Trump, withdrew support for the agreement, citing concerns over its impact on U.S. businesses and potential retaliatory measures against countries imposing such taxes on American firms. This withdrawal has introduced uncertainty into the global tax landscape, as the U.S. is home to many large multinational corporations. (see https://en.wikipedia.org/wiki/OECD/G20_Inclusive_Framework?utm_source=chatgpt.com
Also he highlighted the different approach from today’s understanding of wealth by Forbes, Bloomberg and other ranking agencies. So instead of considering the market capitalization which itself is correlated with net income globally and correlation rate is about 0.7 for US stock exchanges, and also is affected by liquidity coefficient when shares are sold, which might be misleading factor, he looked at the wealth of the shareholders of richest corporations from the earnings/ net income perspective.
Also the companies with higher capitalization usually have high P/E ratio and lower dividend/earnings yield whereas companies with higher net income compare to their share price have higher dividend/earning yield and lower P/E ratio.
Also high P/E Investors are paying more today either because they are caught up in momentum, hype or speculation, are comparing it to low-return alternatives (like bonds), have expectations of future growth, have perceived safety or stability believe that the company is low risk.
Not surprisingly those whom are richest from P/E perspectives are poorest from net income/earnings perspectives.
Appendix Table: 25 Companies - Profit Distribution, Tax Rates, and Centres
|
Company |
Total Profit (USD) |
Profit Distribution (%) |
Profit per Region (USD) |
Tax Centres |
Tax Rates |
Tax Paid per Region (USD) |
|
Apple (AAPL) |
$100B |
USA: 40%, Europe: 30%, Asia: 30% |
USA: $40B, Europe: $30B, Asia: $30B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $8.4B, Ireland: $3.75B, Asia: $5.1B |
|
Microsoft (MSFT) |
$60B |
USA: 45%, Europe: 25%, Asia: 30% |
USA: $27B, Europe: $15B, Asia: $18B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $5.67B, Ireland: $1.875B, Asia: $3.06B |
|
Alphabet (GOOGL) |
$75B |
USA: 40%, Europe: 30%, Asia: 30% |
USA: $30B, Europe: $22.5B, Asia: $22.5B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $6.3B, Ireland: $2.8125B, Asia: $3.825B |
|
Amazon (AMZN) |
$11B |
USA: 50%, Europe: 25%, Asia: 25% |
USA: $5.5B, Europe: $2.75B, Asia: $2.75B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $1.155B, Ireland: $343.75M, Asia: $467.5M |
|
NVIDIA (NVDA) |
$10B |
USA: 60%, Europe: 20%, Asia: 20% |
USA: $6B, Europe: $2B, Asia: $2B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $1.26B, Ireland: $250M, Asia: $340M |
|
Meta (META) |
$30B |
USA: 45%, Europe: 30%, Asia: 25% |
USA: $13.5B, Europe: $9B, Asia: $7.5B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $2.835B, Ireland: $1.125B, Asia: $1.275B |
|
Berkshire Hathaway (BRK.A) |
$20B |
USA: 60%, Europe: 20%, Asia: 20% |
USA: $12B, Europe: $4B, Asia: $4B |
USA: Federal, Ireland, Singapore/HK |
USA: 21%, Ireland: 12.5%, Asia: 17% |
USA: $2.52B, Ireland: $500M, Asia: $680M |
Presentation of the member:
Dr. Giorgi Rusiashvili is PhD in Finance (2003), CEU Fellow (2006), ACCA (2009). He is Director of Georgian Society of Accountants, Auditors and Consultants (since 2015).
He is full professor at Caucasus International University (since 2015) and head of PhD program in Accounting and Finance.
He is founder and member of the board of Accounting Reforms Stakeholders Foundation organizing annual consent in best sustainability reporting - BARTA.
Dr. Giorgi Rusiashvili is JPA International project manager responsible for networking, system of quality control and project management.
He is certified auditor with the Council of Auditing Activities at the Parliament of Georgia (since 2004) and then with State Audit Organization (since 2013).
He graduated from NIMSME in 2008 and NISIET in 1998 (India).
Dr. Giorgi Rusiashvili is the prizewinner for the paper Financial Management and Control at the December 2006 ACCA session for Caucasus States.
He is fully fluent in English.
