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G7 reaches ‘historic’ corporate tax deal aimed at big tech

© Zhiyue Xu

The G7 has reached an agreement to combat corporate tax evasion by large technology corporations. 

“It’s a proud moment,” Chancellor Rishi Sunak adds. 

Mr Sunak stated that G7 finance ministers had agreed on a global minimum tax of at least 15%. 

According to Mr Sunak, this “means that the appropriate enterprises pay the correct tax in the right areas.” 

He referred to it as a “historic deal that finally takes our global tax system into the twenty-first century,” and said, “We’re going to level the playing field and infuse some justice into the system.”

The Chancellor also defended his choice not to seek for a higher global company tax rate at the G7 finance ministers’ conference, despite US President Joe Biden’s original argument that it should be 21%.

For years, rich countries have battled to find a system to generate more income from huge multinational corporations such as Google, Amazon, and Facebook, which frequently record profits in jurisdictions where they pay little or no tax.