G7 Leaders to crack down Facebook, Amazon and others to pay more tax

On Saturday the united states, Britain and other rich nation strike at the reach for more money out of multinational companies like amazon and google to reduce their incentive and shift profits on low-tax offshore.

The cloud flow of hundreds billions of dollars came into casket of government left cash-destitute by covid-19 pandemic after G7 updated its economies and agreed to back a minimum global tax rate of at least 15%. This commitment was taken by the G7 finance ministers in London.

Rishi Sunak the British Treasury chief tweeted a thread where he explained about the deal. The tweet was “Under the Principle of Landmark reforms, the largest global firms with profit margins of at least 10% will be in scope – with 20% of any profit above the 10% margin reallocated and then subjected to tax in the countries where they make sales.”

Later he also mentioned that the move will create more level of playing field in UK firms and crack down on tax avoidance.

The meeting of the finance ministers annual summit G7 leaders is scheduled at on June 11-13 in Cornwall, England.

Manal Corwin the tax principal at KPMG and former Treasury department stated that “signaling there are consenus around some of the key features of what’s being discussed globally was really important to have the momentum to go ahead in the next phase of G-20.

The European union also witnessed  the group 7 summit with an informal forum among Canada, France, Germany, Italy, Japan, the UK and the United states. The decision are not bound legally, however, leaders  can use the forum.

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