G7 nations reach historic deal to tax big multinationals

[speak easy]

Source: Reuters

A group of the world's richest nations reached a landmark deal on Saturday to close cross-border tax loopholes used by some of the world's biggest companies.

The Group of Seven said it would back a minimum global corporation tax rate of at least 15%, and put in place measures to ensure taxes were paid in the countries where businesses operate.

"After years of discussion, G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age," British finance minister Rishi Sunak told reporters.

The accord, which could form the basis of a global pact next month, is aimed at ending a decades-long "race to the bottom" in which countries have competed to attract corporate giants with ultra-low tax rates and exemptions.

Read more: https://www.reuters.com/business/g7-nations-near-historic-deal-taxing-multinationals-2021-06-05/

[brer cat]

1. Good! nt

[ProudMNDemocrat]

2. No more tax Havens for Corporations who go overseas.

Tax them wherever they go. Do business in a country to avoid taxes, get taxed anyway. How about at the same rate as here or higher?

[Raven123]

3. Countries recognize they need a multinational approach for multinational corporate tax dodger

[TheRickles]

4. This seems like hugely good news, unless there are some loopholes we won't find out about 'til later

[Mr. Steve]

5. Let's hope it works

I wonder about clever, scheming attorneys who specialize in skirting laws.

[Ligyron]

6. This is a good start.

But it seems to me we need more nations to join up. Otherwise they’ll just register in Albanian, won’t they?

[Wounded Bear]

7. Great idea! I hope they can make it work...

of course, this is just the G7, none of whom are necessarily "tax havens" where the worst abuses are located.

Maybe it's a start.

[Fla Dem]

8. That's just the G7; Canada, Japan, UK, US , & EU. Good start, but....

Does that extend to Mexico where the US has the CUSMA? What about Russia, India, China other countries businesses could flock to as those countries offer lower taxes or none at all. We already have so much of our manufacturing done in Asia.

[Pinback]

9. The article explains some other important points.

And it takes about two minutes to click on the link and read the whole thing.

This is a very important development in the continuing quest toward equanimity in taxation. Good news - thanks for posting.

[melm00se]

10. The potential revenue

"recovered" would be

With the global minimum rate set at 21%, the top five countries that will recover the most underpaid corporate tax from multinational corporations are the:

US ($166bn under OECD proposal; $148.9bn under METR proposal)
China ($64.4bn OECD; $101.4bn METR)
Japan ($59.7 billion OECD; $79.3bn METR)
Germany ($39.4 billion OECD; $47.8bn METR)
France ($25.8 billion OECD; $28.6bn METR)

Source

Bear in mind that the Biden administration is proposing a budget of up to $6 trillion so this would be pocket change.

Source

[ancianita]

16. Thanks for the Tax Justice Network's interpretation of this decision. It's the more realistic one.

[LittleGirl]

11. Best news I've heard for years! eom

[Beastly Boy]

12. This is a big fucking deal.

Now if only we had a multinational union movement to counter multinational corporate dominance, literally billions of people would stand a fighting chance to better their lives.

[Yo_Mama_Been_Loggin]

13. A lot of GOPers can't be too happy

[Martin68]

14. Excellent news. Is the US on board?

[FakeNoose]

15. Great! but most of the multinationals are operating in 3rd world countries

How do the G7 countries tax companies that are operating out of their jurisdiction?