Monreal assured that in the Senate there are open doors to achieve “tax justice”

Ricardo Monreal, the coordinator of the senators of Brunette, the ruling party, assured this Sunday that the Mexican Senate is in “all the way” to reach agreements that contribute to better tax justice, after the summit of finance ministers and bankers of G20 member countries advanced this Friday in Venice in the debate on impose a tax on multinationals and put an end to tax havens and “tax dumping”.

“Yesterday, a historic agreement was reached between the members of the G20 on the global minimum tax: not only tax escalation, but to tax digital platforms. Mexican Senate ready to agree on new requirements, to achieve better tax justice», Expressed Monreal in their social networks.

And it is that this Saturday in Venice, the finance ministers of the G20, the group of the most powerful countries in the world, approved a “historic agreement on a more stable and fairer international tax architecture“, which establishes a global tax of “at least 15%” on the profits of multinationals

As German Finance Minister Olaf Scholz confirmed, the pact to support the multinational taxation mechanism has been approved by 130 countries and jurisdictions of the 139 that are part of the so-called inclusive framework of OECD (Organization for Economic Co-operation and Development).

“The G20 countries have agreed here that they want to tackle a new international tax order,” said Scholz. in statements to the accredited media in Venice (northern Italy).

G20 finance ministers and central bank governors met for two days in Venice and reached a political agreement to support this system, which it will try to prevent multinationals from evading tax or diverting their profits to tax havens.

This system is based on two pillars, one consists of rallocate part of the income tax paid by multinationals to so-called “market” countries», Ie those in which they exercise their activity and not in the host country; and in applying a minimum corporate tax rate of at least 15% to businesses with revenues as low as $ 890 million.

The global minimum tax would affect less than 10,000 large companies.

A minimum effective rate of 15% would generate additional revenues of $ 150 billion per year, according to the OECD. The objective is to prevent multinationals and especially Gafa (an acronym which designates the giants Google, Amazon, Facebook and Apple), from paying derisory taxes in relation to their income.

This Sunday, the Mexican Secretary of the Treasury and candidate for the post of new governor of the Bank of Mexico (Banxico), Arturo Herrera, assured that a global agreement for a new corporate tax rate it should easily get approval from the Mexican Congress as it will broaden the country’s revenue base, although this will likely occur until September 2022.

The official said, in an interview with Reuters during the meeting of G20 financial leaders weekend in Venice, Italy, only upon approval of the deal The OECD prosecutor didn’t have to think about it.

In addition, the Mexican official stressed that the issue of recovery from the pandemic and the role that vaccines currently play in this regard were discussed. “We all conclude that frankly we are already in a recovery phase, but also we had to accept that this is an asymmetric recovery where there are countries with very limited access vaccines ”.

Finally, he underlined the challenges of climate change and special drawing rights, that is to say the reserves that countries have in the International Monetary Fund (IMF). He explained that there are two positions, the first in which only very low income countries should have access to the fund and another that all countries should have access to this resource.

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