Around 20 Finance Ministers participated in the G20 Meeting that was held in Japan. The participants came together to frame the common rules to close the loopholes by which giant technological groups reduce their Corporate Tax burden. Technological giants like Facebook, Amazon, and Google, etc. are criticized for cutting their tax bills by booking profits in low-tax countries regardless of their location. The new rules impose a higher tax burden on Multinational Companies at the same may be a problem for countries like Ireland for Foreign Investment. Steven Mnuchin US Treasury Secretary on Saturday at G-20 meeting held at Japan said: “ It sounds like we have consensus, so now we need to take the consensus across here and deal with technicalities of how we turn this into an agreement”.
The G-20’s debate is mainly of two pillars on the topic of changes in tax code. The first pillar talks about the rights of a company to sell it’s in a country thought it doesn’t have a physical presence in the country. Under the second pillar the global companies if they book profits in low -tax countries then they are bind by the global minimum tax rate.
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