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In response to the UK's Sunak, the G7 will need to have a tax deal, however the expertise has to pay a justifiable share

© Reuters. FILE PHOTO: British Chancellor of the Exchequer Rishi Sunak attends a virtual press conference at 10 Downing Street in central London, Britain, on March 3, 2021. Tolga Akmen / Pool via REUTERS

LONDON (Reuters) – UK Treasury Secretary Rishi Sunak said an agreement was to be reached with the United States on taxes, but big tech companies would have to pay their fair share in exchange for British support for Washington’s corporate tax proposals.

The United States has proposed a global minimum corporate tax rate of 15%, which is well below the G7 level but above that in some countries like Ireland. However, the UK remains concerned that taxation plans from tech giants like Amazon (NASDAQ :), Google (NASDAQ 🙂 and Facebook (NASDAQ 🙂 don't go far enough.

"We need them to understand why fair taxation of tech companies is important to us. There's a deal, so I urge the US – and all of the G7 – to come to the table next week and finish it off." "Sunak told the mail on the Sunday ahead of a meeting of G7 finance ministers on June 4th and 5th.

"Negotiations are going well … but it has to be the right deal for the UK and that is what this week's negotiations are about."

Sunak said companies like Facebook themselves also wanted a solution to the problem that would give them security and stability.

He also said he wanted to "level the playing field on main UK roads" with the UK considering a separate online sales tax.

"Basically, the global tax system is not working … Big multinational corporations, especially digital companies, because of the way they do business, are unable to pay the right tax in the right places. And that's not fair," he said.

"That is what we are trying to do in these negotiations. If everyone works hard over the next few days and weeks, I am confident that we can find a good place."

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