G20 finance ministers in Venice take up global tax proposal
Written by crest887fm on July 10, 2021
Finance ministers from the Group of 20 (G20) countries will push for agreement on proposals backed by United States President Joe Biden to deter tax dodging by multinational companies.
While approval of the sweeping tax package is likely at the G20 meeting Friday and Saturday in Venice, the proposals still face a key hurdle in the US Congress, where Republicans have pledged to oppose it.
The OECD deal asks countries where companies have their headquarters to enact the minimum tax so that their companies would pay tax at home — even if they shift profits to subsidiaries in low-rate countries overseas, so-called tax havens.
Countries have lowered their tax rates to attract the revenue, moves described by US Treasury Secretary Janet Yellen as a global “race to the bottom” that the proposal could stop.
Another part of the tax package would let countries tax a portion of the profits of large and profitable companies that have no physical presence but make significant amounts of money there, such as through digital businesses like online retailing and advertising.
Credit: Al Jazeera