G7 countries hold meetings for multinational corporation taxers.
ViVA POST – Giant and wealthy countries are actively working to draw up tax plans for large companies such as Google, Amazon, and Facebook that have so far not met the requirements on economic fairness, especially when it comes to taxation. Some European countries are struggling to fund covid19 vaccination projects. As German Finance Minister Olaf Scholz says, “They deliberately move the business model to try to avoid taxes far more than any other company”. Britain, France, and Italy consider that United States technology companies are unfair in their country’s tax practices.
The US has proposed a new global minimum tax levy on only the 100 largest and most profitable companies in the world. Discussions on the minimum tax threshold have actually been discussed at a virtual meeting of G7 member states last year. The US insists that any tax regime should not discriminate against their digital companies thus prohibiting the imposition of a digital service tax. British finance minister Rishi Sunak hosted the meeting. The forum was held face-to-face after the easing of Covid-19 restrictions and was attended by colleagues from Canada, France, Germany, Italy, Japan, and the US.
In addition, the UK government plans to raise corporation tax to 25% from 19%, which takes effect in 2023. The increase was implemented, seeking to offset the impact of costly Covid-19 stimulus measures.