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The British Finance Minister said that the richest country in the world has signed a landmark global agreement to deal with tax avoidance and ensure that large technology companies pay their fair share.
Rishi Sunak said that the finance ministers of the major industrialized countries of the Group of Seven (G7) signed the agreement on the second and final day of the London meeting.
They stated that they have agreed to commit to imposing a minimum global corporate tax of at least 15% by country.
“I am pleased to say that after years of discussions, today the finance ministers of the Group of 7 have reached a historic agreement to reform the global tax system to adapt to the global digital age. The key is to ensure its fairness so that The right company pays the right tax at the right place,” Sunak said in a video message posted on Twitter.
? Today in London @G7 Last, my financial colleagues and I reached a historic agreement on global tax reforms requiring the largest multinational technology giants to pay a fair share of taxes in the UK.
?The topic below explains exactly what this means. #G7UK pic.twitter.com/HdcK1HuM91
At the time of the agreement, the goal of major economies was to prevent multinational companies from transferring profits and taxes to low-tax countries, no matter where they were sold.
The annual summit of G7 leaders is scheduled to be held in Cabis Bay, Cornwall, southwest England, from June 11th to 13th, following the meeting of finance ministers. The United Kingdom will host both sets of meetings because it holds the rotating presidency of the organization.
US Treasury Secretary Janet Yellen stated that the Secretary of the Treasury has made a “significant and unprecedented commitment” to achieve tax rates and end the “race to the bottom” of corporate taxes.
Yellen said in a statement: “The global minimum tax will also help the global economy to flourish, create a level playing field for companies, and encourage countries to compete on an active basis in education, research, and infrastructure.”
Canadian Finance Minister Chrystia Freeland also praised the agreement. She said on Twitter that this will ensure that Canadians and Canadian businesses have a “fair and level playing field” in the global economy.
Multinational companies need to pay a fair share of taxes,@G7 The way to achieve this goal has just been outlined. This is good news for Canadians and Canadian businesses, and will ensure that they enjoy a fair and level playing field in the global economy. https://t.co/keEc2RpPTR
Google said on Saturday that it “strongly supports” efforts to update international tax rules.
Google spokesperson Jose Castaneda said in an e-mail statement: “We hope that all countries will continue to work together to ensure that a balanced and lasting agreement is finalized as soon as possible.”
G7 is also under pressure to provide vaccines and fund climate change projects for low-income countries facing a new wave of COVID-19 infections.
In their Bulletin After the meeting, the finance ministers pledged to work towards a “sustainable, balanced and inclusive global recovery from the COVID-19 pandemic, rebuilding better and more environmentally friendly”, while recognizing that this epidemic will affect certain groups Including women, youth and disadvantaged groups) disproportionately affect the population. “
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