December 4, 2021
G7 One Millimeter Away From Reaching Historic Tax Agreement To Tax Multinationals

G7 One Millimeter Away From Reaching Historic Tax Agreement To Tax Multinationals

The G7 “one millimeter” away from reaching a historic tax agreement to tax multinationals. The richest countries in the world are on the verge of a historic fiscal pact.

The finance ministers of the Group of Seven (G7) began their two-day meeting in London on Friday, where the world’s richest countries were on the verge of reaching an agreement unprecedented in more than a century that forces multinationals to pay your fair share in taxes.

“We are one millimeter away from a historic agreement,” French Finance Minister Bruno Le Maire told the BBC at the end of the first day of meetings.

The United States has proposed a minimum global corporate tax rate of 15%, above the level of countries like Ireland, but well below the G7 average.

Le Maire acknowledged that the level presented by Treasury Secretary Janet Yellen was “just a starting point.” “We need something that is credible,” he added. “We’re still working on this very sensitive point of the guy.”

From his words it was deduced that there are still disagreements both in the minimum taxation to be established and in the way in which the rules will be drawn up to guarantee that companies such as Amazon or Facebook face higher taxes.

However, the French was clear in acknowledging that a potential agreement would also serve to strengthen the influence of the G7, made up of the US, Japan, Germany, Great Britain, France, Italy and Canada.

For his part, the British Minister for the Economy, Rishi Sunak, host of the meeting, insisted to his counterparts in the G7 that the rest of the world was attentive to a potential compromise that would boost the ongoing negotiations within the framework of the Organization for Cooperation and Economic Development (OECD).

“We cannot continue to rely on a tax system that was largely designed in the 1920s,” Sunak stressed.

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