VENICE, ITALY – Treasury Secretary Chrystia Freeland says Canada is making “historic” attempts to prevent multinational corporations from seeking lower tax rates.
Freeland and other finance ministers from the group of 20 countries that represent most of the world economy officially approved a plan for sweeping changes to global taxation at a meeting in Venice, Italy on Saturday.
The plan provides for a global minimum tax of 15 percent to discourage large companies from taking advantage of tax havens with low tax rates.
According to Freeland, a global minimum corporate tax rate is now supported by 132 countries.
The Paris-based Organization for Economic Co-operation and Development will announce other important details of the proposed plan before the G20 leaders meet on May 30-31. Make a final decision in Rome October.
Freeland says the deal could “end the race to the bottom in corporate taxation around the world and ensure that all multinationals pay their fair share of taxes, regardless of where they do business or are headquartered.”
Freeland also says the deal will level the playing field for Canadian businesses by ending shopping in the jurisdiction and ensuring the country’s workforce and social safety net are competitive globally.
This report by The Canadian Press was first published on July 10, 2021.
This story was produced with financial support from Facebook and the Canadian Press News Fellowship.