Updated 36 minutes ago
Finance ministers from seven rich countries have decided to support US-backed plans for a corporate tax minimum around the world, targeting multinational corporations – especially tech giants – to invest more in the epidemic-affected government coffers.
Official official figures show that the Irish economy grew by about 8% in the first quarter of 2021. During the Lockdown period, most stores closed as revenues from multinational companies helped combat the Pandemic recession.
Among the world leaders attending the G7 Finance Ministers’ Summit in London today was Pascal Donohue – where Irish multinational tax systems made international headlines.
Ministers from the United States, Japan, France, Canada, Germany and Italy will attend a two – day meeting at Lancaster House in London. Donohue is attending as Chairman of the Euro Group.
British Chancellor of Exchequer Rishi Sunak is hosting a meeting ahead of next week’s G7 summit of world leaders in Cornwall.
British Chancellor Rishi Sunak greets Pascal Donohue.
Ahead of today’s meeting, European Union officials say they are optimistic that the world’s richest countries will support US-backed plans for a global minimum corporate tax.
The finance ministers of France, Germany, Italy and Spain, which are not members of the Group of Seven, have announced that the agreement on minimum tax rates for companies is “close to the horizon”.
A broad agreement on the move is expected at the G20 finance meeting in July.
In a meeting with the Organization for Economic Co-operation and Development (OECD), US President Biden called for a unified corporate tax rate of 15 percent.
Donoho said last week Ireland has “great reserves.” We want to maintain a tax rate of 12.5% on Biden’s plans.
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Today’s Guardian’s front page includes corporate tax and Ireland’s position at the center of the issue.
Today is the partial front page of the Guardian newspaper.
The The report determines it An Irish subsidiary of Microsoft made $ 315 billion in profits last year but did not pay any taxes to the company because it is a “resident” for tax purposes in Bermuda.
According to the report, Microsoft’s Round Island One’s profit is equivalent to three – quarters of Ireland’s GDP.
In a statement, a Microsoft spokesman linked the figures: “A one-off event that reflects reorganization between companies is not a monetary gain.”
Ahead of today’s meeting, Sunak said, “There will be a global digital tax deal this year.
“We want businesses to pay the right taxes in the right place and I hope we can come to a fair deal with our partners,” he said.
Donoho talks about vaccines
Ahead of the meeting, the Irish Ministry of Finance announced that the summit would focus on global recovery from Kovid. He said the meeting would also reflect discussions on the international tax framework.
With regard to economic recovery, G7 ministers need to consider integrated approaches to the major economic challenges facing economies emerging from the Kovid-19 crisis.
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Speaking before the flight, Donohue said: “There is a clear light at the end of the tunnel as infections begin to accelerate and infections in the ICU gradually decrease.
The eurozone economy is set to rise sharply this year. Our economic policies have facilitated this recovery and over the past year have helped to protect our citizens, protect jobs, and put our economy in a strong recovery position. ”
The ministers will discuss measures to combat climate change and reach an international agreement on how to tax digital businesses.
Minister Donohue will hold bilateral meetings with Ministers from the United States, Japan, Canada and the United Kingdom.
He will meet face-to-face with US Treasury Secretary Janet Yellen after a virtual meeting on St. Patrick’s Day.
Sunak, head of the G7 financial track under the organisation’s UK presidency, said the summit was important.
“It is a great honor to welcome my opponents to London with the renewed spirit of multifaceted cooperation,” he said.
Even before taking over as President of the Group of Seven, we were clear about our priorities – to protect jobs, secure a green and global recovery, and support the world’s weakest nations.
“I look forward to working together to meet the world’s biggest economic challenges – and I’m very optimistic that we will achieve clear results this weekend.”
Reported by Hayley Halpin, The Press Association,. © AFP 2021