This Q&A report examines California’s proposed Worldwide Combined Reporting (WWCR) legislation, arguing that it could mark a major turning point in efforts to curb multinational corporate tax avoidance at a time when international tax cooperation is facing growing political resistance. The report explains how WWCR would prevent corporations from shifting profits offshore and draining public revenues by taxing multinational groups based on where real economic activity takes place, rather than where profits are artificially booked. It also highlights that the approach has already been upheld by the US Supreme Court, aligns with broader global efforts to ensure corporations pay fair taxes where they operate, and is being closely watched as California revives a model largely abandoned decades ago under political pressure rather than policy failure, potentially positioning the state to lead where the US federal government has retreated.
Tax Justice Network ■ Q&A on California’s proposed legislation on Worldwide Combined Reporting (WWCR)
Q&A on California’s proposed legislation on Worldwide Combined Reporting (WWCR)
The report argues California’s proposed Worldwide Combined Reporting legislation could revive one of the most powerful tools for tackling multinational corporate tax avoidance by taxing profits where real economic activity takes place.
