G-7 leaders endorse global minimum tax on multinationals

The leaders of the world’s richest countries have agreed to endorse a global minimum tax on multinational corporations.

The decision had been widely anticipated after finance ministers earlier this month embraced placing a global minimum tax of at least 15 per cent on large multinational companies to stop corporations from using tax havens to avoid taxes and thus robbing some countries of much-needed revenue.

The minimum rate was championed by the United States and dovetails with the aim of President Joe Biden to focus the three-day G-7 summit in England that just ended on ways the democracies can support a more fair global economy by working together.