zerohedge.com 04 Jun, 2021 19:45 am

G-7 Nears Deal On New International Corporate Tax Framework Despite Resistance From Ireland

G-7 Nears Deal On New International Corporate Tax Framework Despite Resistance From Ireland
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Ahead of the G-20 summit in the UK later this month, finance ministers from the G-7 are reportedly on the cusp of a deal for a minimum corporate tax rate of "at least 15%", while differences remain about how megacap tech firms should be taxed.However, a deal involving just the members of the G-7 won't amount to much, since developed economies with competitive corporate tax rates (like Ireland) will almost certainly buck any deal put together by the G-7 and/or G-20.The global talks, taking place under the auspices of the OECD, which has been trying to reform global corporate tax for years now, will also focus on the more contentious issue of how to divide up the right to tax the biggest multinationals, like Facebook, Apple and Amazon.But whatever deal the G-7 arrives at, it won't mean much if it doesn't accommodate Ireland's minimum corporate tax rate of 12.

The UK said in a statement Friday that finance ministers held "productive negotiations about reforming the global tax system and tackling the tax challenges that arise in a complex, digital global economy" while French Finance Minister Bruno Le Maire called on the G-7 to support a broad deal on both a digital tax and a minimum tax rate.It follows President Biden's plans for the biggest tax hikes in decades to finance his two-part, multi-trillion infrastructure packages rolled out in accordance with Biden's "Build Back Better" slogan, as well as a series of tax-related judgments in European courts.

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