G7 Finance Ministers reach historic deal to reform global tax system

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G7 Finance Ministers reach historic deal to reform global tax system

On Saturday, Finance Ministers of G7 nations including the United States and UK, had reached a milestone agreement to overhaul global corporate taxation system, largely in a bid to wring out more cashes by twisting mega-cap multinational conglomerates likes of Amazon and Facebook while crushing their policies to shift profits into low-tax overseas havens.

In point of fact, if successful, a new tax accord backed by the Group of Seven (G7) to implement a minimum global corporate tax rate of 15 per cent could lead to an influx of hundreds of billions of dollars into the Governments which have been facing off a fiscal mayhem due to the ongoing public health crises, suggested analysts.

Global leaders reach landmark deal on minimum global corporate tax rate

More importantly, latest G7 accord to implement a sweeping revamp of global taxation system came forth after eight long years of negotiations which received fresh impetus earlier this year following a proposal from the US President Joe Biden to bring in a minimum global corporate tax rate of at least 15 per cent.

Besides, followed by the announcement, social networking giant Facebook was quoted saying in a statement that the company had expected it would have to lay off more cashes in taxations in more countries due to the deal.

Meanwhile, referring the G7 deal a milestone event in the history of global digital era, British Finance Minister Rishi Sunak said after captaining the two-day meet in London, “G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age.

Nevertheless, German Finance Minister Olaf Scholz was quoted saying followed by the two-day meet of G7 leaders hosted at an ornate 19th century mansion close to Buckingham Palace in Central London that the deal was bad news for tax havens around the globe such as Ireland.