Professor Rita de la Feria featured in Financial Times story on G7 tax deal

Professor de la Feria was commenting on the high-profile tax deal agreed by the G7 group at the summit in Cornwall this week.

The Financial Times (FT) described the deal as a starting point on the road to global tax reform but acknowledged that “there is still a long road ahead before it can be implemented”.

According to the FT, “the accord aims to close loopholes multinational [corporations] have exploited to reduce their tax bills, ensuring they pay more in the nations where they operate.”

Global talks are ongoing, and “must reconcile countries’ competing priorities on two elements, known as ‘pillars’”: one involves ensuring the world’s largest companies pay more tax in countries despite having little physical presence there. The second pillar involves “a global minimum rate of ‘at least 15 per cent’”. 

Professor de la Feria is quoted, asserting “Whilst headline rates matter, competition is likely to continue at the tax base level. This can be messier.”

Indeed, the article explains that the G7 ministers “left much still to be decided in the wider global negotiations, which are being conducted among 139 countries at the OECD in Paris. The first hurdle the G7 agreement faces is winning the backing of the G20 group of nations, which will meet in Venice next month.”

Read the full article on [paywall]