Tough luck, Joe! Biden warned Rishi Sunak will reject US President’s global tax plan

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The US President is pushing for a 21 percent rate as part of a plan to crack down on tax avoidance by multinational companies such as Amazon. One Biden administration official said the plan was an “important moment to demonstrate that the United States and democracies can deliver for the people”.

However, the UK is resisting the proposal and instead wants reforms to focus on making multinational companies pay more tax in countries where they operate.

An HM Treasury spokesperson said: “The UK has been proactive in pressing for an international solution to the tax challenges posed by digitalisation of the economy for a number of years.

“And the Chancellor [Rishi Sunak] has made it a key priority of the UK’s G7 presidency.

“We welcome the US administration’s renewed commitment to reaching a solution to these challenges through the OECD.

“It’s also crucial that any agreement includes changes to ensure digital businesses pay tax in the UK that reflects their economic activities.”

Speaking at a Wall Street Journal event last week, the Chancellor said it is “about finding a way of appropriately and fairly taxing large international digital companies.”

Mr Sunak also said the 21 percent for business tax was “higher than where previous discussions were”.

But he said he was open to discussions.

In 2023, the UK will lift corporation tax to 25 percent for the country’s most profitable businesses.

More to follow…

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