Sunak calls for support for Biden’s “5.5.5 billion per annum” tax plan on taxes and expenses

Rishi Sonak After analysis revealed that the global portfolio would bring in an additional $ 13.5 billion annually, he was asked to put his full weight behind US proposals for a global minimum tax rate.

Die UK Tax Justice Campaign Committee Sock dies Biden Management Plan This will enable companies like Amazon, Apple, Alphabet, Google and Facebook owners to multiply the US multinationals and technology companies operating in the country with higher taxes and bring billions of pounds into the UK treasury every year.

Under US-SchemaThe 100 most profitable multinationals in the world, wherever they are, have to pay taxes to national governments based on the sales they make in each country. This will set a lower global tax rate to end the transformation of profits of multinational corporations and to prevent countries from devaluing each other in tax rates. Washington recommended 21%.

Treasury ministers across Europe, including Germany, France and the Netherlands, hailed the US intervention as a signal that major corporations and digital companies around the world could make significant progress in the fight against tax evasion.

However, tax activists said the UK government had been silent on US plans and urged the president to extend its full support to Washington. Labor shadow adviser Analyze Dots said Britain should play a key role.

“Now that President Biden has begun the debate, it is important that our government play its part,” he said.

Paul Monaghan, executive director of the Fair Tax Mark Campaign Committee, said other major European countries and the International Monetary Fund had publicly responded to the plan. “But we did not hear from Boris Johnson Rishi Sonak Still in the UK. “

“In every generation, the world has an opportunity to create tax justice and eliminate profit diversions. It is important that the UK step in and publicly support what the US and other progressives are trying to do. “

The UK Treasury Department is believed to be aware of the need to reach an agreement on a global minimum tax rate as part of the ongoing negotiations in the UK. Organization for Economic Cooperation and Development (Organization for Economic Co-operation and Development), which coordinates tax reform negotiations between 135 countries.

However, according to sources, the ministers wanted to ensure that any solution was consistent and targeted, while at the same time having strong track record of guiding the UK on global tax reforms. The tax for digital services was introduced last year. This tax is designed as a temporary measure before reaching a global agreement. It targets UK revenue from search engines, social media services and online markets and is similar to deals in France, Italy and Spain.

A Treasury spokesman said: “We welcome the government’s renewed commitment to finding a global solution this year.”

“The UK has made it a priority to update international tax rules to ensure that digital companies pay higher taxes in the UK in line with their economic activities, and we will continue to work transparently and constructively with international partners to create a consensus-based solution.”

Negotiations at the Organization for Economic Co-operation and Development are expected to focus on the gateway to identifying companies in their field in addition to the global minimum rate. Although an agreement is planned for mid-2021, there are significant barriers due to the low corporate tax levied by some countries. EU member states vary between 9% in Hungary, 12.5% ​​in Ireland, 32% in France and 31.5% in Portugal.

The UK tax justice system says setting a lower tax rate could have significant benefits, including increasing tax revenue for the Treasury Department and combating public anger over large companies’ tax evasion.

For me Find the group According to international experts, setting the global rate at 15% would earn the UK government an additional $ 8.2 billion a year, while the 20% rate would earn $ 13.5 billion.

If set to a minimum of 25%, Sunak will stabilize the UK domestic corporate tax rate from the current 19% to $ 22.3 billion from 2023, while raising the rate by 30% to $ 31.6 billion. The pound will bring in a year.

“The government must stand up and support these plans. The UK and its tax haven network have long fostered a global corporate tax race – which must come to an end,” said Robert Palmer, the UK’s executive director for tax justice.