European finance ministers ready deal to stop multinationals' tax abuse
European finance ministers of the four biggest economies said that a landmark agreement to curb tax abuse by multinational companies is within reach and will be closed at the G7 meetings in London on Friday.
In a letter sent to the Guardian, the finance ministers of France, Germany, Italy and Spain said time was of the essence to crackdown on tax avoidance as governments around the world attempt to rebuild following the Covid-19 pandemic.
“For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement,” they said.
If a deal is clinched, it would form the basis for talks on a wider deal with more nations including China, India and Brazil in the G20 meetings in Italy in July.
“We therefore commit to defining a common position on a new international tax system at the G7 Finance Ministers meeting in London this Friday. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July.”
The deal needs to cover the end of tax avoidance by multinationals and big technology companies and will focus on closing loopholes and tax havens.