Washington (AFP): Federal Finance Minister Olaf Scholes (SPD) has expressed confidence that countries like Ireland will abandon resistance to imposing lower taxes on large corporations around the world. My experience is that we are still able to forge global agreements against EU common law tax exemptions, ”Scholes said after a meeting with US Treasury Secretary Janet Yellen in Washington. “That’s why I assume there will be a similar understanding in the European Union.”
Scholes said future global laws will already allow action. “But of course it is good and absolutely necessary for the European Union to accept it for itself.” He is “very confident” on the subject.
The Organization for Economic Co-operation and Development (OECD) on Thursday agreed with 130 countries to impose a minimum tax rate of 15 per cent on global companies. It aims to end tax competition between states and end tax evasion by large corporations. The finance ministers of the G20 group will discuss the issue in Venice next week.
However, there is resistance from countries around the world, such as Ireland and Hungary, to the imposition of minimum taxes. For example, Ireland has the lowest tax rate at 12.5 percent, thus attracting European branches of US technology companies Facebook, Google and Apple. Irish Treasury Secretary Paschal Donohue said on Thursday that the deal was widely supported by Ireland, but not by the 15 per cent tax level. “There is still a lot to be resolved before a comprehensive agreement can be reached.”
Image: © AFP / Archive MANDEL NGAN / Scholz in Washington