Advanced economies making up the G7 grouping have reached a “historic” deal on taxing multinational companies. Finance ministers meeting in London agreed to counter tax avoidance through measures to make companies pay in the countries where they do business. They also agreed in principle to ratify a global minimum corporate tax rate to counter the possibility of countries undercutting each other to attract investments. The deal announced Saturday involving the US, the UK, Germany, France, Canada, Italy and Japan, is likely to be put before a G20 meeting in July.
What are the decisions taken?
The first decision that has been ratified is to force multinationals to pay taxes where they operate. The second decision in the agreement commits states to a global minimum…
