G-7 back steps to deter tax dodging by multinational firms

The Group of Seven wealthy democracies have agreed to support a global minimum corporate tax of at least 15% to deter multinational companies from avoiding taxes by stashing profits in low-rate countries.
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LONDON (AP) — The Group of Seven wealthy democracies have agreed to support a global minimum corporate tax of at least 15% to deter multinational companies from avoiding taxes by stashing profits in low-rate countries. G-7 finance ministers meeting in London also endorsed proposals to make the world’s biggest companies pay taxes in countries where they have lots of sales but no physical headquarters.

That includes U.S.-based tech giants. Britain’s Treasury chief said Saturday that the deal would reform the global tax system for the digital age. U.S. Treasury Secretary Janet Yellen said it provides momentum for a global deal to end a race-to-the-bottom in corporate taxation.

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