Following on from the G7 Finance Ministers meeting on 3-5 June where a political announcement on global taxation was made, the G7 leaders’ Summit took place at the weekend. The G7 leaders endorsed the global minimum tax rate of at least 15 percent and will seek to reach consensus on the proposals through working with the G20 and the OECD in July.
The Communiqué issued by the G7 stated the following in relation to tax:
‘We need a tax system that is fair across the world. We endorse the historic commitment made by the G7 on 5 June. We will now continue the discussion to reach consensus on a global agreement on an equitable solution on the allocation of taxing rights and an ambitious global minimum tax of at least 15 per cent on a country-by-country basis, through the G20/OECD inclusive framework and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors. With this, we have taken a significant step towards creating a fairer tax system fit for the 21st century, and reversing a 40-year race to the bottom. Our collaboration will create a stronger level playing field, and it will help raise more tax revenue to support investment and it will crack down on tax avoidance.’
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