Global minimum taxes, one of the priorities of the Group of Seven industrialized countries in London

Funding for the Group of Seven begins on Friday, June 4 in London, as a priority topic, the project for global minimum taxes revived by the administration of US President Joe Biden and which has the joint support of the major European powers. This is the first time these finance ministers have met in person since the start of the pandemic, and this meeting precedes the G7 heads of state in Cornwall (southwest of England) the following week.

The issue of global minimum taxes, the first “pillar” of the comprehensive tax reform implemented by the Organization for Economic Co-operation and Development (OECD), will prevail as the second element in taxing the profits of large multinational corporations, particularly digital. Giants, where they make their profits, not just where they are registered.

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“We want companies to pay the right amount of tax in the right place and I hope we can strike a fair deal with our partners.”This was stated by the British Chancellor of the Exchequer, Rishi Sunak, in a statement issued by the Treasury at the opening of the meeting. The finance ministers of Germany, France, Italy and Spain (the latter country is not a member of the G7) will defend a common position on this issue, According to a column that appeared in the newspaper on Friday, and buy.

French Minister Bruno Le Maire, Germany’s Olaf Schulz, Italy’s Daniele Franco and Spain’s Nadia Calvino are committed. They took a common position on new international taxes at the G7 finance ministers meeting in London on Friday.and appreciate it ‘The opportunity to reach an agreement is at hand’ To fund the July G20. “We have a chance that multinational companies will pay their fair share.”, they add.

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and buy As an example on Thursday, he cited Irish company Microsoft, which did not pay corporate tax last year because it is registered in Bermuda, despite its $315 billion in profits. For the G7, it’s all about responsiveness tax evasion strategies For some companies, a source close to the negotiations confirms that we have not done so under ‘I wasn’t this close to an agreement’ to question.

This project, which Paris in particular has been craving for several years, has benefited from a comeback with the rise of Biden and is more conducive to pluralism than his Republican predecessor Donald Trump. In addition, like many other countries, Americans are looking for new ways to replenish their public finances that have been hit hard by the pandemic, through aid or stimulus packages worth hundreds of billions of dollars. The Biden administration initially defended a minimum corporate tax rate of 21% before cutting their claims to 15% to win more votes.

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The finances of the Group of Seven must be a “strong support” Minimum corporate tax “an ambitious optimist” and distribution “justice” from Fees to be levied on taxes A draft joint press release obtained by Agence France-Presse (AFP) showed the profits of multinational companies, especially the big names in the digital world. A formal agreement cannot be announced until the G20 finance ministers convene in Venice in July, before ratification by OECD countries.

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Drum refractories

Faced with countries that have already opposed the project, such as Ireland or Hungary, where corporate tax rates are particularly low, the G7 countries rely on international negotiating movement Which may lead to an increase in refractory materials.

This article is reserved for our subscribers Read also Ireland against a 15% global tax

According to the interim ruling, the G7 countries (the United Kingdom, France, Germany, Italy, the United States, Canada and Japan) must also comply. “Enforce supportive policies” for their savings, especially with regard to new variants of the virus that could hinder recovery. They will renew their promises to provide assistance to developing countries, especially in obtaining vaccines against Covid-19.

The fight against climate change will also take center stage, particularly the debate over international standards on environmental transparency and carbon dioxide markets.2 or green finance. “I am determined that we will work in unison to address the most pressing global economic challenges – and I am very optimistic that we will achieve tangible results this weekend.”Mr. Sink said.

Read our column: “The imposition of a global minimum tax on corporations is a historic opportunity that should not be missed.”

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Megan Vasquez

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