Wednesday, October 27, 2021

G7 finance ministers have made some progress on tax deal, UK says

LONDON – Finance ministers of the Group of Seven (G-7) said on Wednesday they had made some progress to reach a joint position on a global corporate tax deal before it needs to win a wider international audience.

“In October a consensus was reached on some important open issues to support in reaching a final political settlement within the OECD inclusive framework,” the US Treasury Department said in a statement.

Britain—which chairs the G7 this year—in June signed a framework agreement on a global minimum corporate tax rate of 15 percent and measures to squeeze more money from tech giants like Amazon, Google and Facebook.

Next week the Organization for Economic Co-operation and Development (OECD), which has been trying to shepherd through tax reform for years, seeks full consensus on detailed proposals from 139 negotiating countries.

UK Finance Minister Rishi Sunak said: “Today’s meeting of finance ministers is a testament to the G-7 countries’ continued ambition and cooperation in achieving historic global tax reform and ensuring that companies pay taxes in the countries they do business with.” give a fair share of it.”

A UK finance ministry spokesman said the G7 finance ministers had reached “a common understanding on some important remaining issues” ahead of the OECD and G20 tax meetings next week.

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Earlier, Japanese Finance Minister Taro Aso said that “some points” under discussion had been agreed. French Finance Minister Bruno Lemaire also cited progress on key points of the talks.

A key point before has been how exactly large multinationals should be taxed, with measures regarding the United States diverting tax revenue from tech giants to Europe instead of their US headquarters.

Irish Finance Minister Paschal Donohoe – who attended the G7 meeting in his capacity as chair of a group of euro area finance ministers – said he expected the OECD to produce updated proposals in the coming days.

“Next week will be a pivotal moment for years of negotiations and will show whether an agreement is possible by the end of next week,” Donohoe said.

Ireland, which has a corporate tax rate of just 12.5 percent, has so far declined to sign off on OECD proposals.

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This News Originally From – The Epoch Times

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