Rishi Sunak calls on Joe Biden to join global tax targeting tech giants’ mega profits

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Rishi Sunak calls on Joe Biden to file for global tax targeting the mega profits of tech giants like Facebook and Google

  • Chancellor urges President Biden’s government to finalize negotiations on the new tax in time for next month’s G7 summit in Cornwall
  • Comes after years of criticism of how tech companies have channeled their profits through tax havens to minimize the amount they pay on their massive earnings
  • Biden’s administration has indicated its willingness to drop its opposition to ‘tech tax’ in exchange for an agreement to introduce a new minimum level of corporate tax worldwide – expected to be set at 15%

Rishi Sunak today calls on the US government to join a groundbreaking new global tax targeting the super profits of technology giants such as Google and Facebook.

In an exclusive interview with The Mail on Sunday, the Chancellor urges President Biden to finalize negotiations on the new tax – which would bring in billions of pounds in additional revenue – in time for next month’s G7 summit in Cornwall. .

It comes after years of criticism of how tech companies have funneled profits through tax havens to minimize the amount they pay in their massive earnings.

The Biden government has indicated its willingness to drop its opposition to the ‘tech tax’ in exchange for an agreement to introduce a new minimum level of corporate tax worldwide. This is expected to be set at 15 percent.

Rishi Sunak today calls on the US government to join a groundbreaking new global tax targeting the super profits of technology giants such as Google and Facebook.  In an exclusive interview with The Mail on Sunday, the Chancellor urges President Biden to finalize negotiations on the new tax ¿which would bring in billions of pounds in additional revenue ¿in time for next month's G7 summit in Cornwall .

Rishi Sunak today calls on the US government to join a groundbreaking new global tax targeting the super profits of technology giants such as Google and Facebook. In an exclusive interview with The Mail on Sunday, the Chancellor urges President Biden to finalize negotiations on the new tax – which would bring in billions of pounds in additional revenue – in time for next month’s G7 summit in Cornwall. .

It comes after years of criticism of how tech companies have channeled their profits through tax havens to minimize the amount they pay on their massive earnings.

It comes after years of criticism of how tech companies have channeled their profits through tax havens to minimize the amount they pay on their massive earnings.

Mr. Sunak said the technical tax – which will be determined by the profit margins of the world’s largest companies – is necessary because “the global tax system is not working.”

He adds: “The right companies don’t pay the right taxes in the right places.

“That’s not fair and that’s something I want to fix.”

G7 foreign ministers will meet in London at the end of this week to discuss the proposed deal ahead of the leaders’ summit a week later.

Mr. Sunak calls on the US to sign up: “We understand why a global corporate tax agreement is important to our American friends. We need them to understand why fair taxation of technology companies is important to us.

“A deal needs to be struck, so I urge the US – and the entire G7 – to come to the table next week and get it done.”

The Treasury is also examining plans to help protect the traditional shopping street and generate more revenue through an online sales tax levied on items purchased over the Internet for home delivery.

Mr. Sunak’s intervention came when a cache of emails and letters obtained by The Mail on Sunday revealed how:

  • Former Deputy Prime Minister Sir Nick Clegg has become a major fixer for Facebook;
  • Sir Nick led a team of Facebook executives who sought to protect the tech giant’s massive profits from the threat of new taxes – despite previously suggesting the company should pay more;
  • As Mark Zuckerberg’s right-hand man, the former Lib Dem leader launched a charm offensive to win over power brokers in the EU, telling a senior official: ‘It’s good to have a European and a Liberal in the heart of Silicon Valley. ! ‘ During his interview, Mr Sunak said that negotiations with the US were ‘going well’, adding, ‘There is a big price here, but we have to stick to our guns to get it over the line …

‘Large multinationals, especially digital companies, are, by the nature of their business, unable to pay the right tax in the right places. That is not fair and that means there is no level playing field with high street companies. ‘

Under the terms of the US plan, if a company like Facebook, for example, were to try to channel its profits from its UK operations through a port at a rate of 1 percent, it would require the 14 percent difference.

The move would hit countries like Ireland, which has tried to attract businesses by setting the rate at 12.5 percent.

The UK corporate tax rate is 19 percent, but will rise to 25 percent by 2023 to help repair damage from the pandemic.

Mr. Sunak calls on the US to sign up: “We understand why a global corporate tax agreement is important to our American friends.  We need them to understand why fair taxation of technology companies is important to us.  (Upstairs, Joe Biden in March)

Mr. Sunak calls on the US to sign up: “We understand why a global corporate tax agreement is important to our American friends. We need them to understand why fair taxation of technology companies is important to us. (Upstairs, Joe Biden in March)

A total of 137 countries are involved in discussions on technology and corporate taxation through the Organization for Economic Co-operation and Development.

As part of further efforts to conquer the wings of the UK technology giants, the government has established the Digital Markets Unit regulator to ensure fair competition in digital advertising.

Ministers are also looking into forcing companies to pay newspapers for articles they reproduce, similar to a system in place in Australia.

Google and Facebook accounted for 80 percent of the £ 14 billion spent on digital advertising in the UK in 2019 last year, while national and local newspapers took up just 4 percent.

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