UK says any global tax deal must tackle Big Tech ahead of G7 meeting
The UK has indicated that any global deal on a minimum corporate tax rate must ensure that Big Tech pays its fair share of tax, a day before chancellor Rishi Sunak hosts an online meeting of G7 finance ministers and central bankers.
“Our consistent position has been that it matters where tax is paid and any agreement must ensure digital businesses pay tax in the UK that reflects their economic activities,” a Treasury source told Reuters this morning.
“We welcome the US’s renewed commitment to tackling the issue and agree that minimum taxes might help to ensure businesses pay tax – as long as they are part of that package approach,” the official added.
Earlier this week the G7 was said to be nearing an agreement over corporation tax for multinationals, paving the way for a new global tax regime cracking down on some of the world’s largest companies.
US President Joe Biden had spearheaded the moves, but the UK was reportedly resistant to the pact.
A deal would be an important precursor to formal negotiations taking place at the OECD in Paris between the wider G20 countries.
It forms part of long-running efforts to overhaul the global corporation tax regime, cracking down on multinational businesses that book profits in low-tax jurisdictions and ensure tech giants pay their fair share.