Corporate tax deal ‘in sight’ as G7 meets
Group of Seven finance ministers kicked off talks yesterday, with optimism growing that the world's wealthiest countries will support US-backed plans for a minimum global level of corporate tax.
British finance minister Rishi Sunak was hosting the meet -- held in person after an easing of Covid restrictions and attended by counterparts from Canada, France, Germany, Italy, Japan and the United States.
The talks were preparing the ground for a broader summit of G7 leaders in Cornwall, England starting on June 11, which will include US President Biden who has called for a unified minimum corporate tax rate of 15 percent.
Momentum is building for a minimum level of corporate tax to prevent multinationals like tech giants from playing the system to boost profits.
Corporate tax is one of two pillars in efforts for global fiscal reforms, the other being a "digital tax" to allow countries to tax the profits of multinationals headquartered overseas.
According to a draft communique seen by AFP, the finance chiefs and central bankers of the world's seven richest nations will express "strong support" over a minimum global minimum corporate tax rate. Ministers also plan to commit to "sustain policy support", or stimulus, for "as long as necessary" to nurture economic recovery, while addressing climate change and inequalities in society, according to the document.
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