London: Support the US tax plan if technology companies participate

If the United States wants international support for the minimum global corporate income tax rate, US tech companies must also make an equitable contribution. Here is what British Chancellor of the Exchequer Rishi Sunak said in an interview with Mail on Sunday.

Next week, the so-called G7 finance ministers will meet. Ministers from the United Kingdom, France, Germany, Italy, Japan, Canada and the United States are discussing, among others, the White House’s plan for an international minimum rate of 15 percent for corporate profits tax. President Joe Biden wants to make tax avoidance elsewhere less attractive through mailbox companies in countries with favorable tax climates. But Sunak worries that large tech companies in particular will not contribute enough to the treasury.

“We need to explain to them why it is important to impose fair taxes on technology companies for us. There is a need for a deal, so I urge the United States and the Group of Seven to do it. The negotiations are going well, but we need a good deal,” Sonak said at Mel on Sunday. “ Large multinationals, especially digital companies, are unable to pay appropriate taxes in the right countries. this is not fair.”

The UK government previously imposed a special tax on digital business. Large international companies with search engines, web stores or social media have to pay 2 per cent of the amount of business they earn in the UK. This affects, among other things, the US groups Google, Facebook and Amazon. Therefore, the United States considers the digital tax to be discrimination against American companies and threatens the British with import duties or other measures.

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