A Defence of UTPR

This article defends UTPR (formerly known as the Under Taxed Payments Rule or Under Taxed Profits Rule) which is a critical backstop under Pillar Two’s Global Anti Base Erosion Rules (GloBE Rules) ensuring a 15% global minimum tax. It examines the UTPR’s design evolution and advocates for its implementation as an adjustable-rate tax mechanism tied to domestic entities’ income. By framing anti-avoidance as grounds for expanded tax nexus, the article contends that the UTPR’s legitimacy must be a corollary of the Income Inclusion Rule’s (IIR’s) acceptance (as controlled foreign corporation (CFC)-like), upholding equity in global tax order.