Rishi Sunak praised the historic agreement last week THE UK Chancellor wants the City of London to be exempt from the G7 tax agreement reached with G7 finance leaders just days ago, it has emerged. Rishi Sunak wants a deal specifically for financial services amid fears that banks with London head offices would be impacted by the change, the Financial Times reported. Speaking at the weekend, Sunak said the “historic agreement” would lead to the biggest multinational tech companies having to pay their fair share of tax in the UK. However an official close to the talks said the UK is now among the countries seeking an exemption for financial services.
On this week s G7 meeting agenda, countries will debate whether to approve a global minimum corporate tax of 15% here s what this proposal could look like.
France tells G7 to hike minimum tax rate
French finance minister Bruno Le Maire called the G7 tax deal a starting point
6 June 2021 • 9:23pm
The deal struck between G7 finance ministers on Saturday is designed to force technology giants to pay more tax by introducing a minimum global corporation tax rate of 15pc.
However, French finance minister Bruno Le Maire called the deal a “starting point” and said that “in the coming months we will fight to ensure that this minimum corporate tax rate is as high as possible.”
Pro-tax groups have joined calls to raise the corporation tax figure higher. The Institute for Public Policy Research urged the UK to raise corporation tax to at least 21pc, a figure supported by US president Joe Biden.
The Chancellor has hailed a “historic” decision by G7 countries to agree a global base rate of corporation tax and reforms to the tax system aimed at targeting online tech giants.
Following two days of talks in London with G7 finance ministers, including colleagues from the US and Germany, Rishi Sunak announced that they had signed up to having a corporation tax rate of “at least 15%”.
Changes will also be made to ensure major corporations, especially those with a strong online presence, will pay taxes in the countries where they operate and not only where they have headquarters.
The new policy is thought to be aimed at the likes of tech giants Amazon and Microsoft.