Canadian Finance Minister Chrystia Freeland confident of G7 tech tax deal

Canadian Finance Minister Chrystia Freeland said on Wednesday a multilateral agreement on the taxation of tech giants was “within reach” and it should go hand in hand with a deal on a global minimum corporate tax rate, Reuters reports.

Freeland will travel to London this week for a meeting of the finance ministers of the Group of Seven leading industrialized nations (G7). They are expected to reach a deal on a minimum global corporate tax, a draft communique showed.

The United States proposed last month to set the minimum tax at 15 percent, down from the 21 percent it proposed in April, but others have argued its proposal does not go far enough on the taxation of tech giants like Amazon.com Inc, Alphabet Inc’s Google and Facebook Inc.

“I’m an optimist. We’ve been having good conversations along with our partners,” Freeland told reporters, when asked about the digital tax issue. “The new U.S. administration … has taken an approach of compromise and I think that really does mean a deal is within reach.”

Freeland said if a multilateral deal on the tech tax issue was not reached, Canada would go ahead with its own planned digital services tax, although she reiterated that both issues should be dealt with. “For us, what we’re looking for is a deal on both pillars one and two,” she said. “It’s important for us that they go together.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.