Rishi Sunak ‘confident’ of securing tax deal on tech as G7 finance summit begins Business News

Chancellor Rishi Sunak said he was “confident” of reaching an international agreement on the taxation of tech giants as he welcomes his counterparts to London for the G7 finance meeting.

Ministers from the United States, Japan, France, Canada, Germany and Italy began the two-day meeting at Lancaster House in London on Friday morning, ahead of the G7 leaders’ summit of the next week in Cornwall.

Mr Sunak said a US proposal to focus on the 100 most profitable digital companies in the world in a global tax deal could work – but he insisted that tech companies pay more taxes in countries where they operate. operate.

“It’s definitely something we can work with as long as it meets our goals of reaching the right companies, and at first glance it is possible,” the chancellor told Reuters ahead of the meeting. “We just have to work on the details. “

Tax activists hope G7 countries can help close loopholes that have allowed companies like Google and Amazon to avoid high taxes by placing a large chunk of their profits overseas.

The US government announced tariffs on around £ 1.4bn of imports from the UK and five other countries earlier this week over its intention to tax US-based tech giants. United States.

But President Joe Biden’s administration immediately suspended tariffs to allow G7 financial negotiations to proceed.

Mr. Sunak said he was “very optimistic” about obtaining “some concrete results” by the G7 this weekend. But the Chancellor is under enormous pressure to agree to a new global minimum corporate tax rate.

Last month, the United States presented a plan for a 15% “floor” for the tax, while calling for continued talks to “push that rate higher.” All G7 countries – except the UK – have expressed support for the 15% proposal.

Labor called on Sunak to “publicly endorse proposals for a global minimum corporate tax rate” at the G7 finance meeting.

Ahead of the two-day summit, the finance ministers of France, Germany, Spain and Italy co-signed an open letter calling for a corporate tax deal that would be “fit for the 21st century” .

Speaking ahead of the G7 meeting, Mr Sunak said: “Reaching a global digital tax deal has also been a key priority this year – we want businesses to pay the right amount of tax for the right amount. place, and I hope we can achieve a fair one with our partners.

“I am determined to work together and unite to tackle the world’s most pressing economic challenges – and I am extremely optimistic that we will achieve concrete results this weekend.”

Although Mr Sunak, any announcement on any tax deal is expected to be delayed until Boris Johnson and other G7 leaders meet in Cornwall next week.