G-20 Signs Off on Tax Crackdown

Finance chiefs of the G-20 large economies endorsed a landmark move to stop multinationals shifting profits to low-tax havens at talks on Saturday, where they will also warn that coronavirus variants threaten the global economic recovery.

German Finance Minister Olaf Scholz confirmed to reporters that all G-20 economies were on board for the pact, while U.S. Treasury Secretary Janet Yellen said a handful of smaller countries still opposed to it, such as low-tax Ireland and Hungary, would be encouraged to sign up by October.

G-20 Signs Off on Tax Crackdown

“We’ll be trying to do that, but I should emphasize it’s not essential that every country be on board,” she said.

“This agreement contains a kind of enforcement mechanism that can be used to make sure that countries that are holdouts are not able to undermine – to use tax havens that undermine the operation of this global agreement.”

Citing improvements in the global outlook so far, the draft adds: “However, the recovery is characterized by great divergences across and within countries and remains exposed to downside risks, in particular the spread of new variants of the Covid-19 virus and different paces of vaccination.”

“We all have to improve our vaccination performance everywhere around the world,” French Finance Minister Bruno Le Marie told reporters. “We have very good economic forecasts for the G-20 economies, and the single hurdle on the way to a quick, solid economic rebound is the risk of having a new wave.”

So what comes next is yet to be seen, but we have to wait and watch. The news will keep on being updated, and you will always be informed about what’s happening, so no need to worry. Keep an eye out.