Momentum for Tax Rules Accord Building: Aso

Politics Economy

Tokyo, May 28 (Jiji Press)--Countries are moving toward an agreement on international rules aimed at preventing tax dodging by multinational companies, Japanese Finance Minister Taro Aso said Friday.

"Momentum is starting to increase for an agreement," Aso told reporters after a videoconference of finance ministers and central bank chiefs from the Group of Seven major industrial nations plus the European Union. Discussions are expected to progress further at an in-person meeting of the G-7 finance ministers set for June 4-5 in London, Aso said.

Aso said he told his G-7 counterparts that international cooperation is needed to avert competition for reductions in corporate taxes.

The seven countries--Britain, Canada, France, Germany, Italy, Japan and the United States--and the EU are aiming to adopt a joint statement at the London meeting.

Countries around the world had raced to cut their corporate tax rates to attract foreign companies. But many of them now face the need to secure massive funds for costly measures for the fight against the novel coronavirus. Against the background, the United States has proposed a global minimum corporate tax rate of 15 pct or more.

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