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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G7 nations ‘just one millimetre’ from historic tax deal

Some of the world’s richest nations are within touching distance of a historic deal to close the net on large companies which do not pay their fair share of tax, France and Germany said on Friday after a day of talks in London.

Finance ministers from the Group of Seven rich nations are meeting in person for the first time since the start of the COVID pandemic, after U.S. President Joe Biden’s administration gave fresh impetus to stalled global tax talks this year.

Rich nations have struggled for years to agree a way to raise more tax from large multinationals such as Google, Amazon and Facebook, which often book profits in jurisdictions where they pay little or no tax.

“We are just one millimetre away from a historic agreement,” French Finance Minister Bruno Le Maire told the BBC.

German Finance Minister Olaf Scholz said he was “absolutely confident” that there

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Yellen’s (Proposed) Tax Cartel

Welcome to the Capital Note, a newsletter about business, finance, and economics. On the menu today: Biden’s tax plans go global, the return of the doom loop, Germany’s green new dud, robots and jobs, and problems with index funds. To sign up for the Capital Note, follow this link.

A Tax Hike So Destructive that It Needs (But Won’t Get) a Cartel to Contain the Damage
Cartels generally operate in predictable ways. One of those predictable ways is that they attempt to keep prices high. Part of the price of government is tax. It is unsurprising, therefore, that Janet Yellen has floated the “bold” (NPR’s adjective, not mine) idea of a global minimum corporate tax, in the wake of what is planned to be a substantial increase in America’s corporate-tax burden.

Three things about any such increase really should not be up for debate.

Firstly,

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Companies split on whether to fight corporate tax hike

President Joe Biden speaks during his first press briefing in the East Room of the White House in Washington, DC, on March 25, 2021.

Jim Watson | AFP | Getty Images

The U.S. business community is trying to figure out how to address President Joe Biden‘s infrastructure plan, which calls for higher corporate taxes to help pay for at least $2 trillion in government spending. 

Several prominent business groups, such as the U.S. Chamber of Commerce, oppose the proposed tax hikes. Behind the scenes, though, some companies are considering whether to put up much of a fight because of corporate America’s demand for an infrastructure overhaul, according to people familiar with the matter.

Lobbyists and other D.C. influencers told CNBC that they have received calls from anxious corporate clients eager for guidance on the path forward. Some of the people declined to be named in this story in order

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