G7 finance ministers reach ‘common understanding’ on reshaping global tax rules

Washington, Sep 30 (UNI/Sputnik) US Treasury Secretary Janet Yellen met virtually with the G7 finance ministers and reached an understanding on several important global tax issues, the Treasury Department said in a statement.
“Earlier today, US Secretary of the Treasury Janet L. Yellen participated in a productive virtual meeting with her G7 finance minister counterparts to convene on the ongoing efforts to improve the international tax system to make it equitable and equipped to meet the needs of the 21st century global economy. A common understanding was reached on some of the important open issues, to support reaching final political agreement within the OECD Inclusive Framework in October,” the Treasury Department said in a release on Wednesday.

Yellen reiterated the importance of reshaping global tax rules to make sure corporations pay their “fair share” and provide governments with the resources to invest in their people and economies, the release said.
On Tuesday, Yellen made similar statements during a call with European Trade Commissioner Valdis Dombrovskis, during which the two officials discussed international tax reform issues and the practice of governments undercutting the other’s tax rates.
During the G7 meeting in June, the leaders of the world’s advanced economies agreed to impose a global minimum tax on corporations’ international earnings – a pact that was later supported by 134 countries representing more than 90% of the world’s gross domestic product.