G7 finance ministers have agreed to work together to create a 'level playing field' on global taxation.
The deal announced on Saturday between the G7 group of wealthy nations - US, the UK, France, Germany, Canada, Italy and Japan, plus the EU - could see billions of dollars flow to governments to pay off debts incurred during the Covid crisis.
Alex Cobham, chief executive of the Tax Justice Network, called the deal a "turning point" but said it remained "extremely unfair". That means they only pay the local rate of tax, even if the profits mainly come from sales made elsewhere. This is legal and commonly done.Firstly the G7 will aim to make companies pay more tax in the countries where they are selling their products or services, rather than wherever they end up declaring their profits.
It has been the dream of campaigners and mainly European finance ministers for years. They would scarcely have believed it was possible until the past few months. But the need to fill coffers emptied by the pandemic, and the arrival of the Biden administration in the US, created a moment of opportunity.
And then there is the question of the rest of the world. This now goes from the G7 to the wider G20 group, including China, Russia and Brazil, and then beyond.
Danmark Seneste Nyt, Danmark Overskrifter
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