G7 Summit: Rishi Sunak Says The World Cannot Count On A Tax System “Extensively Designed in the 1920s” | Economic news

Chancellor Rishi Sunak told world financial leaders that the world cannot “continue to rely on a tax system that was largely designed in the 1920s.”

Speaking at a G7 meeting in London on Friday, Sunak added that the world had “high expectations” as to what could be agreed by finance ministers during the two-day summit.

And ahead of the meeting, Mr Sunak said he was “confident” that he could strike a deal with the US on a controversial technology tax introduced by the UK in 2020.

Last March, Britain announced a 2% tax on income earned in the UK from online services such as search engines and social media companies.

The United States resisted the idea, imposing some $ 2 billion (£ 1.4 billion) in tariffs on imports, including from the United Kingdom, on Wednesday in retaliation for taxes imposed on large American technology companies. However, he immediately suspended tariffs for 180 days to allow talks to progress.

The critical talks come as it has been revealed that an Irish subsidiary of Microsoft paid no corporate tax on the $ 315 billion (£ 222 billion) in profits it made in the year last, according to The Guardian Thursday.

Finance ministers from France, Italy, Germany, Spain and elsewhere in London will also discuss on Friday provides for a worldwide corporate tax of 15% it could raise $ 50 billion (£ 35 billion) to $ 80 billion (£ 56 billion) for governments around the world.

The idea behind the tax is to level the playing field globally and to remove jurisdictions where large multinational corporations are able to avoid paying taxes.

Originally proposed by the United States, the plan has the support of all G7 member states except the United Kingdom.

Britain has indicated, however, that it may be willing to remove its tax on digital services on technology platforms if it receives assurances from President Joe Biden’s administration that Silicon Valley giants such as Apple and Facebook would not be allowed to continue to avoid taxes.

“Getting a global digital tax deal has also been a key priority this year – we want businesses …