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Global minimum tax: Britain apparently wants an exception for the financial sector

2021-06-09T11:40:14.233Z


According to the "Financial Times", the British Chancellor of the Exchequer wants to enforce an exception to the minimum taxation for financial companies - the G7 countries had only just agreed on uniform tax rules.


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London Financial District: an exception to the rule?

Photo: Alberto Pezzali / AP

To be different from the rest of the world is part of the identity of Great Britain.

Now the country is apparently planning an idiosyncratic variant of British "exceptionalism": According to a report in the Financial Times, Finance Minister Rishi Sunak is pushing for exemptions for the London-based financial sector from the planned global minimum tax.

The British government feared disadvantages for global banks based in London, the newspaper reported with reference to information from the environment of the negotiations.

Sunak also addressed the concerns at the meeting of finance ministers of the seven leading industrial nations (G7) last weekend.

Only a few days ago, the G7 countries agreed on a basic framework for global tax reform.

The heart of the compromise, which is considered historic, is a minimum tax for large corporations of at least 15 percent.

The British Finance Minister Sunak had also spoken of a historic tax deal after the negotiations.

If Great Britain cannot prevail with the exemption, the City of London would probably be less attractive as a location for financial institutions. Other countries, on the other hand, hope that the minimum tax will generate higher revenues. France, for example, calculates an increase of several billion euros per year. Finance Minister Bruno Le Maire told the French TV broadcaster BFM. But there is still no exact number. According to calculations by the EU tax observatory, an independent analysis company, France can expect 4.3 billion euros.

Le Maire said that the other pillar of the planned tax reform can be expected to generate additional revenues of between EUR 500 million and EUR 1 billion.

This pillar is about a different distribution of taxation rights between the countries.

However, only the 100 largest and most profitable corporations are taken into account.

mic / Reuters

Source: spiegel

All business articles on 2021-06-09

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