World leaders and tech giants vote on landmark G-7 tax deal
The Group of Seven Rich Nations reached a landmark deal on Saturday to fill cross-border tax loopholes used by some of the world’s largest companies.
Below are the reactions:
RISHI SUNAK, UK MINISTER OF FINANCE AND HTE OF THE MEETING
“After years of discussions, G7 finance ministers have reached a historic agreement to reform the global tax system to adapt it to the global digital age.”
When asked for an estimate of how much the deal could bring Britain, Sunak replied: “This is the first step, this is a deal done at the G7, we still have to go to the G20 and come to an agreement with a larger group of countries, so it’s hard to say where the final agreement will end up. “
JANET YELLEN, SECRETARY TO THE AMERICAN TREASURE
“The G7 finance ministers today made a significant and unprecedented commitment that gives tremendous momentum towards achieving a strong global minimum tax at a rate of at least 15%.
“This global minimum tax would end the race to the bottom in corporate taxation and ensure fairness for the middle class and working people in the United States and around the world.
“The global minimum tax would also help the global economy to prosper, by leveling the playing field for business and encouraging countries to compete on positive bases, such as educating and training our workforce and investment in research, development and infrastructure. “
NICK CLEGG, DIRECTOR OF GLOBAL AFFAIRS FACEBOOK
“Facebook has long called for reform of global tax rules and we welcome the significant progress made in the G7. Today’s agreement is an important first step towards providing certainty for businesses and building public confidence in the global tax system.
“We want the international tax reform process to be successful and recognize that this could mean Facebook is paying more taxes, and in different places.”
OXFAM CAMPAIGN GROUP
“It is absurd for the G7 to claim that it is ‘overhauling a failing global tax system’ by implementing a global minimum corporate tax rate that is similar to the soft rates charged by tax havens like Ireland, Switzerland and Singapore, they set the bar very high, so low that companies can just step over it.
“It will be impossible to stop the explosion of inequality caused by COVID-19 and tackle the climate crisis if companies continue to pay virtually no taxes… This is not a fair deal.
“The G7 cannot expect the majority of the world’s countries to take the crumbs off their table.”
OLAF SCHOLZ, GERMAN MINISTER OF FINANCE
“The seven most important industrial nations today supported the concept of minimum taxation for businesses. This is very good news for tax justice and solidarity and bad news for tax havens around the world.
“Companies will no longer be able to dodge their tax obligations by recording their profits in the least taxed countries. Stable tax revenues are important to ensure that states can meet their obligations. It will be even more urgent after the coronavirus pandemic. “
BRUNO LE MAYOR, FRENCH FINANCE MINISTER
“This is a starting point and in the months to come we will fight for this minimum corporate tax rate to be as high as possible.”
CHRYSTIA FREELAND, CANADIAN MINISTER OF FINANCE
“Multinational corporations must pay their fair share of taxes and the G7 has just charted a course to make this possible. This is good news for Canadians and Canadian businesses, and it will give them a level playing field in the global economy. “
DANIELE FRANCO, ITALIAN MINISTER OF ECONOMY
“We hope to find an agreement also at the level of the G20 so that these pillars (rules) become a point of reference for global taxation.”
“We believe that an OECD-led process that creates a multilateral solution will help stabilize the international tax system. The G7 agreement marks a welcome step forward in the effort to achieve this goal.
“We hope that discussions will continue to move forward with the broader G20 alliance and the inclusive framework.”
“We strongly support the ongoing work to update international tax rules. We hope countries will continue to work together to ensure that a balanced and lasting agreement is soon finalized.”
PASCHAL DONOHOE, IRISH MINISTER OF FINANCE
“It is in everyone’s interest to reach a lasting, ambitious and fair agreement on the international tax architecture. (Ireland has a tax rate of 12.5%).
“I look forward to participating in the discussions at the OECD. There are 139 countries around the table, and any agreement will have to meet the needs of countries large and small, developed and developing. “
PAOLO GENTILONI, EUROPEAN COMMISSIONER FOR THE ECONOMY
“A big step by the G7 towards an unprecedented global deal on tax reform. The European Commission will actively help make this happen at next month’s G20 in Venice.”
PEDRO SANCHEZ, SPANISH PRIME MINISTER
“We are moving towards a new tax system for the global digital age. The G7 today concluded a historic agreement that will allow a greater contribution from major global companies. The objective: a better distribution of wealth to achieve higher levels of social justice.