The G7 is not all it’s cracked up to be

UK chancellor Rishi Sunak has hailed the Group of Seven (G7) finance ministers’ cross-border tax proposals as ‘truly historic’ and ‘seismic’. These proposals, which would establish a minimum global corporate tax, are to be targeted at multinational companies.

You can understand why Sunak was making noise about this. For years the largest international corporations, including the iconic Big Tech firms, have been adept at minimising their global tax bills. Making them stump up more lucre allows the UK government to pose as a global leader, and to give substance to its ill-defined ‘Global Britain’ slogan. No doubt there will be more of this from Boris Johnson this weekend, given it is Britain’s turn to host the G7.

Leaving aside the hyperbole from British ministers, what might the G7 tax agreement tell us about the state of international relations? In particular, does it represent the historic revival of ‘multilateral co-operation’, as many commentators have claimed? No, not really, is the short answer. Read the full article here.

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