Landmark deal: G7 decides to tax tech giants

Now leaders of G7 have decided to tax giants Google and Amazon companies. The United States, Britain and other large, rich nations reached a landmark deal on Saturday to squeeze more money out of multinational companies such as Amazon and Google and reduce their incentive to shift profits to low-tax offshore havens. The decision was taken at the meeting of G7 finance ministers in London .Hundreds of billions of dollars could flow into the coffers of governments left cash-strapped by the coronavirus disease pandemic after the G7 advanced economies agreed to back a minimum global corporate tax rate of at least 15%.

US Treasury Secretary Janet Yellen said the agreement “provides tremendous momentum” for reaching a global deal that “would end the race-to-the-bottom in corporate taxation and ensure fairness for the middle class and working people in the U.S. and around the world.” British Treasury chief Rishi Sunak posted a Twitter,where he explained what the deal means. The move will create a more level-playing field for UK firms and cracking down on tax avoidance, he said.

???? At the @G7 in London today, my finance counterparts and I have come to a historic agreement on global tax reform requiring the largest multinational tech giants to pay their fair share of tax in the UK.

????The thread below explains exactly what this means. #G7UK pic.twitter.com/HdcK1HuM91

— Rishi Sunak (@RishiSunak) June 5, 2021

The Group of 7 is an informal forum among Canada, France, Germany, Italy, Japan, the UK and the United States. European Union representatives also attend. Its decisions are not legally binding, but leaders can use the forum to exert political influence.