Rich nations back deal to tax multinationals – BBC News

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>The deal aims to stop this from happening in two ways. >Firstly, the G7 want a global minimum tax rate so as to avoid a “race to the bottom” where countries can undercut each other with low tax rates. Secondly, the rules will aim to make companies pay tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits. Good idea! Hope this reduce the ‘tax evasion via legal loop holes’ by greedy multi-billion corporates.


Wow, this is potentially huge


>Tech firms say they welcomed the move. Facebook vice president Nick Clegg said they recognised it could mean the company “paying more tax, and in different places”. >A spokesperson for Amazon quoted by Reuters news agency said: “We believe an OECD-led process that creates a multilateral solution will help bring stability to the international tax system. >”The agreement by the G7 marks a welcome step forward in the effort to achieve this goal.” >A spokesperson for Google said: “We strongly support the work being done to update international tax rules. We hope countries continue to work together to ensure a balanced and durable agreement will be finalised soon.” Wonder why the multinational corporations are reacting like this, as if it’s a good thing that they’ll have to pay more. Doesn’t seem genuine. Is it perhaps to prevent ending up in trouble by signalling that they won’t seek to circumvent potential new tax codes?


15% tax is a step in the right direction. Just hope this is actually followed through and governments don’t back down


> would apply to global companies with at least a 10% profit margin. Sounds like it won’t apply to that many companies then.