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G7 finance ministers make some progress on tax deal, UK says By Reuters


LONDON (Reuters) – Finance ministers from the Group of Seven made some progress on Wednesday at reaching a joint position on a landmark global corporate tax deal, days before it needs to win over a wider international audience, Britain’s finance ministry said.

Britain is the G7 chair. In June, it brokered an agreement that included a 15% global minimum corporate tax and other measures to make tech firms like Amazon (NASDAQ.), Google (NASDAQ.:), and Facebook (NASDAQ.:) more profitable.

The Organisation for Economic Co-operation and Development (OECD) will seek agreement from all 139 countries next week on the details of tax reform proposals. This is a long-standing effort to implement tax reform.

Rishi, the finance minister, said: “Today’s meeting with finance ministers is evidence of the continuing ambition and collaboration by G7 countries in reaching historic global tax Reform and ensuring companies pay their fair share tax in the countries where they do business.”

A British finance ministry spokesperson said the G7 finance ministers had reached “a common understanding … on some important remaining issues” before OECD and G20 tax meetings next week.

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Taro Aso from Japan’s finance ministry stated that agreement had been reached on “some issues” currently being discussed.

There has been some disagreement about how large multinationals should tax. The United States was worried that these measures might divert revenue from American tech firms to Europe.

Paschal Donohoe, the Irish finance minister, attended the G7 meeting as chair of a group euro-zone finance ministers. He said he expects the OECD will produce revised proposals within the next few days.

Donohoe indicated that “Next week” will prove crucial in the ongoing negotiations. He said, “This week will decide if an agreement will be possible by next week.”

Ireland has a 12.5% corporate tax rate and has declined to join the OECD.

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