The group of seven rich countries struck a landmark deal on Saturday to close the cross-border tax gates used by some of the world’s largest companies.
The reactions are given below:
RISHI SUNAC, MINISTER OF FINANCE IN THE UK AND RAPPORTEUR OF THE MEETING
“After years of discussions, G7 finance ministers have reached a historic agreement to reform the global tax system to adapt it to the global digital age.”
Asked to estimate how much the agreement could bring to Britain, Sunak replied: “This is the first step, this is an agreement reached in the G7, we still have to go to the G20 and reach an agreement with a wider group of countries, so it is difficult to say where the final deal will go. “
JANET YELEN, AMERICAN SECRETARY
“The G7 finance ministers have made a significant, unprecedented commitment today, which gives a huge impetus to achieving a stable global minimum tax of at least 1
“This global minimum tax will put an end to the race to the bottom of corporate taxation and provide justice for the middle class and working people in the United States and around the world.
“The global minimum tax will also help the global economy thrive by leveling the playing field and encouraging countries to compete on a positive basis, such as training and educating our workforce and investing in R&D and infrastructure.”
NICK CLEGG, FACEBOOK HEAD ON GLOBAL ISSUES
“Facebook has long called for reform of global tax rules, and we welcome the important progress made during the G7. Today’s agreement is an important first step towards business security and strengthening public confidence in the global tax system.
“We want the process of international tax reform to succeed and recognize that this could mean that Facebook pays more taxes in different places.”
OXFAM CAMPAIGN GROUP
“It is absurd for the G7 to claim that it is ‘reworking a broken global tax system’ by setting a global minimum corporate tax rate similar to the soft rates charged by tax havens such as Ireland, Switzerland and Singapore. They set the bar so low that companies can simply cross it.
“Stopping the explosion in inequality caused by COVID-19 and tackling the climate crisis will be impossible if corporations continue to pay virtually no tax …. This is not a fair deal.
“The G7 can’t expect most countries around the world to accept crumbs from their table.”
OLAF SCHOLZ, GERMAN MINISTER OF FINANCE
“Today, the seven most important industrialized countries have supported the concept of minimum taxation for companies. This is very good news for tax justice and solidarity and bad news for tax havens around the world.
“Companies will no longer be able to evade their tax liabilities by reserving their profits in the countries with the lowest taxes. Stable tax revenues are important to ensure that countries can meet their obligations. This will be even more urgent after the coronavirus pandemic. “
BRUNO LE MAYOR, FRENCH MINISTER OF FINANCE
“This is a starting point and in the coming months we will fight to ensure that this minimum corporate tax rate is as high as possible.”
CHRYSTIA FREELAND, CANADIAN MINISTER OF FINANCE
“Multinational corporations must pay their fair share of taxes, and the G-7 has just charted a way to make that possible. This is good news for Canadians and Canadian business and will provide fair and equal conditions for them in the global economy.”
DANIELE FRANCO, MINISTER OF THE ECONOMY OF ITALY
“We believe that we will also find an agreement at the G20 level so that these pillars (rules) can become a starting point for global taxation.”
“We believe that an OECD-led process that creates a multilateral solution will help achieve stability in the international tax system. The G7 agreement marks a good step forward in this effort.
“We hope that discussions will continue with the wider G20 alliance and inclusive framework.”
“We strongly support the work done to update the international tax rules. We hope that the parties will continue to work together to ensure that a balanced and lasting agreement is finalized soon.”
PASCHAL DONOHOE, IRISH MINISTER OF FINANCE
“It is in everyone’s interest to reach a sustainable, ambitious and fair agreement on the international tax structure. (Ireland has a tax rate of 12.5%).
“I look forward to participating in the discussions at the OECD. There are 139 countries at the table and each agreement will have to meet the needs of small and large countries, developed and developing.”
PAOLO GENTILONI, EUROPEAN COMMISSIONER FOR ECONOMICS
“A big step taken by the G7 towards an unprecedented global agreement on tax reform. The EU Commission will actively contribute to achieving that of the G20 next month in Venice.”
PEDRO SANCHEZ, SPANISH PRIME MINISTER
“We are moving towards a new tax system for the global digital age. Today, the G7 has reached a historic agreement that will allow for greater contributions from large global companies. The goal: better distribution of wealth to achieve higher levels of social justice.”