G7 finance ministers meet in London to broker global tax deal

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Finance ministers from the G7 group of rich nations are meeting in London on Friday for two days of talks aimed at moving closer to a global deal ...

Finance ministers from the G7 group of rich nations are meeting in London on Friday for two days of talks aimed at moving closer to a global deal to raise more tax from the likes of Google, Facebook and Amazon.

U.S. President Joe Biden's willingness to raise taxes on large businesses now creates more chance of an international consensus than under his predecessor Donald Trump, and a need to repair COVID-hit public finances makes it more pressing. Due to COVID restrictions, ministerial delegations have been cut down and there are few travelling journalists. Seating plans have been redesigned with the help of public health officials, and Sunak greeted leaders by bumping elbows, not shaking hands.

However, Japanese finance minister Taro Aso said on Monday that he did not expect agreement this week on a specific minimum tax rate. But just as important for Britain and many other countries is that companies pay more tax where they make their sales - not just where they book profits, or locate their headquarters.

The United States has proposed levying the new global minimum tax only on the world's 100 largest and most profitable companies.

 

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