Rishi Sunak has announced an “historic agreement” has been reached to reform the global tax system.
Speaking after a meeting of G7 finance ministers in London, the Chancellor said: “I am delighted to announce that today after years of discussion G7 finance ministers have reached a historic agreement to reform the global tax system.
“To make it fit for the global digital age, but crucially to make sure that it is fair so that the right companies pay the right tax in the right places and that’s a huge prize for British taxpayers.”
The Chancellor defended the decision not to push for a higher global corporation tax rate at the meeting with G7 finance ministers after US President Joe Biden had initially argued it should be 21 per cent.
Rishi Sunak told broadcasters in London: “I would say a couple of things. First of all, the agreement reached here today says at least 15 per cent and secondly, it is worth taking a step back.
“This is something that has been talked about for almost a decade.
“And here for the first time today we actually have agreement on the tangible principles of what these reforms should look like and that is huge progress.”