G20 backs global tax crackdown: report | Canberra weather

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G20 club finance chiefs have backed a landmark move to prevent multinationals from shifting profits to low-tax tax havens and recovering hundreds of billions of dollars in lost revenue, according to one draft press release. The deal at talks in the Italian city of Venice is expected to be finalized on Saturday and crowns eight years of wrangling over the issue. The goal is for country leaders to give him a final blessing at an October summit in Rome. The pact to establish a minimum global corporate tax rate of at least 15% is an attempt to squeeze more money from tech giants like Amazon and Google, as well as other multinationals capable of researching the most attractive tax base. While tax activists point to the shortcomings of the proposals and want a more ambitious crackdown, the move is a rare case of cross-border tax coordination and could deprive many tax havens of their appeal. “We invite all members who have not yet joined the international agreement to do so,” said the statement consulted by Reuters about a number of countries which still resist the decision. Two sources said the statement is expected to be released at the end of talks on Saturday without change. That would represent political approval of a deal this month between 131 countries in talks hosted by the Paris-based Organization for Economic Co-operation and Development. Momentum for a deal has gathered pace this year with strong backing from the administration of US President Joe Biden and many public treasuries around the world stretched by the massive budget support needed to protect economies ravaged by the crisis. pandemic. Geoffrey Okamoto, first deputy managing director of the International Monetary Fund, called it a “net gain for the world” but said there was still work to be done to simplify the deal for countries, especially poorer, integrate it. “It has to be simple enough that the vast majority of the world can implement and administer it,” he told Reuters. If all goes according to plan, the new tax rules are expected to be translated into binding legislation around the world before the end of 2023. However, a fight in the U.S. Congress over Biden’s proposed tax increases on businesses and corporations. wealthy citizens could still create obstacles. Likewise, difficulties could arise because Ireland, Estonia and Hungary, Member States of the European Union, are among the countries which have not yet joined. “I am convinced that at the end of the day we will come to a common decision within the EU,” German Finance Minister Olaf Scholz told DLF radio before starting the talks. The meeting of G20 finance ministers and central bankers in Venice is their first face-to-face since the start of the COVID-19 pandemic. G20 members account for over 80 percent of global gross domestic product, 75 percent of global trade, and 60 percent of the planet’s population, including US, Japan, UK, France and Germany. and India. Associated Australian Press


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