The Bishop of St Albans, the Rt Rev Alan Smith, has called the G7 global taxation agreement “a positive first step to ending profit offshoring”, but said that “questions remain to whether this delivers tax justice.”
He said that while the agreement was “a welcome start” it “favours high-income countries at the expense of low-income countries and more to be done.”
His comments follow the G7 Finance Ministers’ meeting where ministers agreed a global tax reform that will mean the largest multinational tech giants will pay their fair share of tax in the countries in which they operate.
Finance ministers also agreed to the principle of a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate.
Christian Aid’s Head of UK Advocacy and Campaigns, Pete Moorey, commented:
““Whilst we welcome renewed political commitment to tackling corporate tax avoidance by setting a minimum rate, we call on governments to raise the rate and ensure the design of any new system delivers significant tax payments to lower income countries in particular.”
“While some progress has been made on corporate tax, the G7 finance ministers have left Boris Johnson and his fellow leaders with a lot to do to make next week’s G7 summit a success. This is a big week for the Prime Minister. He must deliver far more ambitious commitments in Cornwall to secure vaccine equity, debt cancellation and climate finance. Any less would be a missed opportunity to tackle the Covid and climate crises, which are hitting the world’s poorest people the hardest.”