G7 Ministers to Discuss Far-Reaching Deal on Corporate Tax

Finance ministers from the main industrialised countries are set to discuss a deal on the reform of the global corporate tax system , including a minimum tax rate for multinationals, at a G7 meeting in London this weekend, the Irish Times reported. The ministers look certain to signal support for a deal and reports on Thursday evening pointed to efforts to achieve a breakthrough on key details, including a global minimum corporate tax rate of 15 per cent, above the Republic’s 12.5 per cent rate. The Minister for Finance, Paschal Donohoe, will attend the meeting, which starts on Friday, in his role as president of the Eurogroup of finance ministers and will discuss corporate tax at a bilateral meeting on Saturday with US treasury secretary, Janet Yellen. The US is leading calls for an agreement at the Organisation for Economic Co-operation and Development (OECD) on a major overhaul of corporate tax rules, a process which threatens Irish tax revenue and also the use of a low tax regime to attract multinationals. Sources in the UK government, which is hosting the meeting, were quoted by the Financial Times as being “cautiously optimistic” of a breakthrough at the G7 on outline terms for a deal on the two key issues in the OECD talks. This would involve an agreement on giving countries taxing rights on sales by major companies in their markets and an effective global minimum tax rate for multinationals of 15 per cent. Read more.