G7 agreement for a global tax on multis …

The G7 finance ministers agreed to 15% tax on multinationals at the meeting held at that time in England. Officials have prepared in the last few hours a document which The heads of state of the United States, Canada, Germany, Italy, United Kingdom, France and Japan are due to sign at the June 11 meeting. from Cornwall, Great Britain.

UK Finance Minister Rishi Sunak called the agreement on a global tax rate “historic”. It is “a minimum overall rate of 15% for the taxation of large companies, to be applied country by country ”, as detailed by Sunak via Twitter, while raising “a tightening of the tax burden” so that technology companies pay “their fair share”.

It seeks to “adapt to the global digital age” and, above all, “making sure the right companies pay the right taxes in the right places and that’s a huge price for UK taxpayers, ”Sunak said in turn.

Yes indeed, Global companies such as Facebook, Amazon and Google are affected. From a legal point of view, they can tax their activities abroad, in countries other than those where they operate. In this way, they pay taxes in countries like Ireland, with very favorable tax conditions. In fact, Ireland already received a warning from the European Union in 2017 not to charge in the same way as the rest of the bloc.

The approved standard seeks to be paid in the countries where they sell products and services and not where they declare services. “Tax dumping cannot be an option in Europe or in any country in the world. This practice would only lead to an even greater drop in corporate tax collection, more inequalities and the inability to pay. finance basic public services “, they noted in a text by Italian Daniele Franco, Spanish Nadia Calviño, French Bruno Le Maire and German Olaf Scholz.

The latter said that “If we share a minimum corporate tax, we will help stop the race to lower taxes that we see today and we will ensure that our countries can financially support the necessary commitments, especially after all the money spent to deal with the Covid emergency, and to defend people’s health and the economy. “

For her part, the head of the North American Treasury, Janet Yellen, stated that “This global minimum rate puts an end to the race to the bottom of corporate taxes and secures justice for the middle class and working people in the United States and around the world. “

It is estimated that the document to be approved by heads of state next Friday could give a big boost to negotiations of this nature within the Organization for Economic Co-operation and Development (OECD) and the G20. The United States agreed to 15 percent when the initial proposal reached 21.

In turn, collection through this tax would alleviate the expenses demanded by the coronavirus pandemic. The debate on taxes on concentrated capital has accelerated after several years with the Covid-19 crisis.