The Group of Seven economies are nearing an agreement on the corporate taxation of multinationals, with hopes a global deal can be achieved later this year.
A G7 pact could be reached by the end of this week after progress on talks between officials was made on how to create new rules around the imposition of levies on the world’s largest companies.
If an agreement is achieved, it could spur on the Organisation for Economic Co-operation and Development, which is also hosting tax reform negotiations with 135 countries directed by the wider G20.
The tax reforms could see companies no longer able to shift profits to countries with low corporation tax rates and ensure US digital tech firms pay more tax in the countries where they make sales.
The acceleration in talks came after the US agreed to accept a minimum corporation tax rate of at least 15 per cent, with France, Germany and Italy agreeing that the new proposal was a good basis for sealing an international deal by July.
"The world is closer than ever before to a global minimum tax," US National Security adviser Jake Sullivan said at the weekend.
"Great to hear the positive reception to our proposal. This is what it looks like to lead the world to end the race to the bottom."
In April, the OECD said it was crucial that countries act together on challenges that span borders such as the taxation of multinational enterprises.
The organisation is leading talks on how to reform the system to prevent tax avoidance by big companies and digital firms and restore fiscal sustainability after the crisis.
About 135 countries aim to reach a broad agreement this summer to rework rules for taxing multinational groups and big technology companies, such as Alphabet, Facebook and Amazon.
US President Joe Biden initially called for a global minimum business tax rate of 21 per cent, a levy considered too high by Britain's Chancellor of the Exchequer Rishi Sunak despite the UK's pledge to increase corporation tax to 25 per cent in 2023 to help Britain's coronavirus-ravaged economy recover.
However, Mr Biden has now scaled back his ambitions to an effective rate of 15 per cent to not only secure a consensus with the G7 but to increase its appeal across the globe. This is still higher than in countries such as Ireland, which has a corporate tax rate of just 12.5 per cent.
Mr Sunak is pushing for a fairer way to tax the digital economy, supporting a multilateral approach to achieve a coherent international tax system that not only taxes large multinational digital companies but also ensures they pay more tax in the countries in which they operate.
If a deal can be agreed by finance ministers, the G7 could then sign it off at the Cornwall summit on June 11 to 13 and then present a plan to the 135 nations currently negotiating the OECD’s “inclusive framework”.
Meanwhile, the G20 hopes to secure a deal by the summer, although some officials say October is a more likely date for a full international agreement.
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Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
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Hulk
Cardiac disease, stroke and dementia from high heart rate
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Agility reduces risk of falls
Increased risk of obesity and mental health issues
Black Panther
Vegetarian diet reduces obesity
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Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
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Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)
Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)
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Jemma Eley – goal attack / wing attack (Dubai College)
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His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
Carol Glynn, founder of Conscious Finance Coaching
