Business World

Wednesday 21 August 2019

France to use G7 meeting for latest assault on Irish corporate tax model

 

France and Germany made a proposal this year for minimum corporate taxation, as part of a major overhaul of decades-old cross-border tax rules under way in the Organisation for Economic Co-operation and Development (OECD) (stock photo)
France and Germany made a proposal this year for minimum corporate taxation, as part of a major overhaul of decades-old cross-border tax rules under way in the Organisation for Economic Co-operation and Development (OECD) (stock photo)

Leigh Thomas

France will use a G7 finance ministers' meeting it is hosting this week for a new push on minimum corporate taxation, although it is too early to agree on a specific rate, a finance ministry source said.

It has put fiscal justice at the heart of its year-long presidency of the Group of Seven industrialised nations. The July 17-18 summit takes place in Chantilly, north of Paris.

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France and Germany made a proposal this year for minimum corporate taxation, as part of a major overhaul of decades-old cross-border tax rules under way in the Organisation for Economic Co-operation and Development (OECD). Their efforts have been boosted by the Trump administration's 2017 tax reforms which, in effect, introduced a minimum level of tax in the US. France hopes backing from G7 countries for minimum taxes will boost the efforts of the OECD, which is seeking agreement among nearly 130 nations by the end of 2020.

"One of the first priorities of this G7 finance ministers' meeting is to revamp taxation for the 21st century, such that it is adapted to the economic realities of the 21st century," the finance ministry source said.

Finance minister Bruno Le Maire says current rules allow big internet firms to get away without paying their fair share of tax, as they can book profits in low-tax jurisdictions like Ireland, regardless of where the income originates from.

Reuters

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