G7: New digital tax rules ‘woefully inadequate’ to fund Covid-19 recovery

London – As G7 finance ministers meet to discuss proposals for new digital tax rules, ActionAid raises concerns that the plans could trigger a race to the bottom on corporate tax rates.  

Ministers will be discussing proposals put forward by the OECD, which was tasked with leading a process to negotiate improved taxation of the digital economy.  

Anders Dahlbeck, global tax policy manager at ActionAid, says:  

“The G7 has a golden opportunity to reject the OECD deal and call for a fairer global tax system that sets a global minimum corporate tax rate at a level that ensures all companies pay their fair share of taxes in the countries where they do business.  

“Instead, governments look likely to agree a 15% rate or less, which could trigger a downwards spiral and a race to the bottom for corporate tax rates around the world.  

“In the face of a global health and economic crisis and massive budget deficits, the new rules for taxing the digital economy look woefully inadequate to meet the challenges ahead and fund a just, green and feminist recovery.  

“The G7 summit must now be a starting point for the international community to come together to negotiate rules that will actually address the tax avoidance, secrecy and unfair distribution of taxing rights that continues to plague international corporate taxation.” 

ENDS. 

For more information and interviews contact jess.midwinter@actionaid.org.