The European Commission welcomes the agreement of the G7 finance ministers on the minimum global corporate tax rate of 15%.
The European Commissioner speaks on Twitter. “Of a major G7 keyboard. Multinational companies have to pay taxes where they make a profit. States must adopt the lowest level of this tax“, Polo Gentiloni insists.
According to the Observatory of European Taxation, the union could touch 50 billion euros with such a device. But some member states, such as Ireland, are reluctant to do so because they question the tax system that benefits companies. “We must acknowledge the fact that the G7 proposals do not fit into the larger framework of economies around the world.“, Irish MEP underscores Billy Keller (Europe Renew).
In order to involve the entire international community, a compromise needs to be reached in the OECD. Until then, the EU is pushing for reform. For some experts, a paradigm shift is already underway. “Since 2015, the focus has been on preventing profit margins and ensuring that companies pay taxes where they make a profit. Much progress has been made in 2021, not because of a change of president in the United States“, Rebecca Christie of the Bruegel Institute explains.
The long-awaited agreement between the 27th to implement the new tax transparency tool was reached last week. Multinational companies operating in the European Union will specify their profits by country and indicate where they pay taxes.
Compromise, however, is a matter of criticism, as it applies only to the European Union and states registered on the list of tax havens. In Parliament, MEP Iban Garcia del Blanco (S&D) is still talking about a first step. “I would like to remind you that 80% of tax evasion takes place between the European Union and its member states.“Spaniard is happy to be able to move forward in the future.”From a point where we succeeded“.
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