G7 finance ministers make some progress on tax deal, UK says

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LONDON, Sep 29 (Businesshala) – Finance ministers of the Group of Seven said on Wednesday they had made some progress in reaching a joint position on a historic global corporate tax deal before it needed to win a wider international audience .

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“A consensus was reached on some important open issues to support reaching a final political settlement in October under the OECD Inclusive Framework,” the US Treasury Department said in a statement.

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Britain – which this year chairs the G7 – signed a framework agreement in June on a global minimum corporate tax rate of 15% and measures to squeeze more money from tech giants such as Amazon, Google and Facebook.

Next week the Organization for Economic Co-operation and Development, which has been trying to shepherd through tax reform for years, wants to get full consensus on detailed proposals from 139 negotiating countries.

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UK Finance Minister Rishi Sunak said: “Today’s meeting of Finance Ministers is a testament to the G7 countries’ continued ambition and cooperation in achieving historic global tax reform and ensuring that companies pay taxes fairly in the countries they do business with. share.”

A UK Finance Ministry spokesman said the G7 finance ministers had reached “a common understanding on some important remaining issues…” ahead of the OECD and G20 tax meetings next week.

Earlier, Japanese Finance Minister Taro Aso said that “some points” under discussion had been agreed. French Finance Minister Bruno Lemaire also cited progress on key negotiating points.

A key point before has been how exactly large multinationals should be taxed, with measures regarding the United States diverting tax revenue from tech giants to Europe instead of their US headquarters.

Irish Finance Minister Paschal Donohoe – who attended the G7 meeting in his capacity as chair of a group of euro area finance ministers – said he expected the OECD to produce updated proposals in the coming days.

“Next week will be a pivotal moment for years of negotiations and will show whether an agreement is possible by the end of next week,” Donohoe said.

Ireland, which has a corporate tax rate of just 12.5%, has so far refused to sign on to the OECD proposals.

Reporting by David Milliken, Editing by Andy Bruce and Lincoln Feast.

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