G7: Rich nations confident on reaching tech tax deal

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Finance ministers from the G7 group of leading economies are confident of striking a deal on taxing multinational companies at their meeting in London.

The agreement is expected to include a global minimum rate of corporation tax.

It would target tech giants such as Amazon and Microsoft.

German finance minister Olaf Scholz said the deal would “change the world”.

He said a 15% rate would help pay back debts that have built up during the pandemic – and that he was “absolutely confident” there would be an agreement.

“If we agree on the minimum taxation for corporates, this will help to go out of this race to the bottom we see with taxes today,” he told the BBC.

“And this will help the countries we live in to finance their tasks, and – especially after Covid crisis and all the money we spent – to defend the health of the people, and to defend the economy.”

French finance minister Bruno le Maire urged Ireland, which has one of the lowest corporate tax rates in the European Union, at 12.5%, to get “on board”.

He told the BBC: “European countries, that in the past, opposed this new international tax system, must understand that they have to give the agreement to this major breakthrough”.

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