G-20 finance ministers back plan to stop use of tax havens

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Italian Policemen in riot gears clash with demonstrators during a protest against the G20 Economy and Finance ministers and Central bank governors’ meeting in Venice, Italy, Saturday, July 10, 2021. (AP Photo/Luca Bruno)

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Top finance officials representing most of the world’s economy have backed a sweeping revision of international taxation that includes a 15% global minimum corporate levy to deter big companies from resorting to low-rate tax havens.

Finance ministers from the Group of 20 countries endorsed the plan at a meeting Saturday in Venice.

U.S. Treasury Secretary Janet Yellen said the proposal would end a “self-defeating international tax competition” in which countries have for years lowered their rates to attract companies. She said that had been “a race that nobody has won. What it has done instead is to deprive us of the resources we need to invest in our people, our workforces, our infrastructure.”

The

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G20 finance ministers in Venice take up global tax proposal | Business and Economy News

Finance ministers from the Group of 20 (G20) countries will push for agreement on proposals backed by United States President Joe Biden to deter tax dodging by multinational companies.

While approval of the sweeping tax package is likely at the G20 meeting Friday and Saturday in Venice, the proposals still face a key hurdle in the US Congress, where Republicans have pledged to oppose it.

Biden’s proposal for a 15 percent global corporate minimum tax resulted in a breakthrough in stalled international tax talks. An agreement was reached July 1 among 131 countries in negotiations convened by the Paris-based Organisation for Economic Co-operation and Development (OECD).

The deal aims to discourage the use of often-complex accounting schemes to move profits to where the least tax is due.

The OECD deal asks countries where companies have their headquarters to enact the minimum tax so that their companies would pay tax at

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Canada to tax tech giants as planned despite framework G7 tax deal, says Freeland

Video: G7 Finance Ministers Wrangle Over Global Tax (Bloomberg)

G7 Finance Ministers Wrangle Over Global Tax

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Canada is proceeding with its plan to tax technology giants next year even as the world’s wealthiest democracies proposed a new global tax framework that includes plans to impose a levee on the firms, federal Finance Minister Chrystia Freeland said Saturday. 



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Her remarks came following a meeting of G7 finance ministers, who hammered out details of the possible global taxation plan during talks held in London. 

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The Group of Seven wealthy democracies agreed to support a global minimum corporate tax of at least 15 per cent to deter multinational companies from avoiding taxes by stashing profits in low-rate countries. They also endorsed proposals to make the world’s biggest companies — including U.S.-based tech giants — pay taxes in countries where

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Bitcoin Holdings: Why Tax and Accounting Matter – Risk & Compliance Journal

The second part in the series addresses accounting, tax, and SEC reporting considerations.

As companies consider investing in bitcoin or other cryptocurrencies, their finance and reporting organizations will need to have a clear understanding of the accounting and tax treatments these new assets require.

Prevailing accounting principles were, of course, largely established at a time when digital assets were not yet even contemplated. U.S. Generally Accepted Accounting Principles (GAAP) do not offer specific guidance for the treatment of digital assets, and, to date, the Financial Accounting Standards Board (FASB) has decided not to add a project on accounting for cryptocurrencies. For those reasons, a company’s accounting function must draw on existing U.S. GAAP to facilitate accounting for digital assets.

First, the accounting will be determined by what the company is accounting for. What is it investing in? If a company is not subject to specialized industry guidance, practice

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