Joe Biden’s tax crackdown on tech giants: companies face tougher measures under US president global plan, leaked documents reveal
- Tech giants and multinationals are facing a tax restriction as a result of a global deal
- Biden plans to force companies to pay more tax in the countries in which they operate
- The move has been touted as a major breakthrough after years of inactivity
Tech giants and multinationals face a tax restriction under a global deal proposed by Joe Biden.
The US president plans to force companies to pay more tax in the countries in which they operate, according to leaked documents.
And a global minimum corporate tax rate would prevent “ a race to the bottom, ” with companies shifting profits to low-tax jurisdictions, the Financial Times reported.
Tech giants and multinationals face tax restriction under global deal proposed by Joe Biden
The move, touted as a major breakthrough after years of inactivity, was welcomed by the UK yesterday.
The government said it remains a top priority to make technology giants pay their fair share. Companies like Apple and Amazon have been accused of using complicated financial structures to minimize their debt.
In 2019, Amazon’s UK tax bill amounted to just £ 293m despite a £ 13.7bn sale, while Apple’s retailers paid £ 6.2m after a UK sale of £ 1.4bn. Both companies insist that they pay everything they legally owe.
Janet Yellen, US Secretary of the Treasury, said earlier this week, “The point is to ensure that governments have stable tax systems that generate adequate income … and that all citizens fairly share the burden of funding the government.”