Germany's Scholz wants global tax floor to stop evasion
BERLIN, Oct 21 (Reuters) - Germany's Finance Minister Olaf
Scholz has proposed a global minimum rate of corporation tax
coupled with tougher measures to prevent tax evaders from
stashing their profits in tax havens, newspaper Welt am Sonntag
In a guest article for the Sunday paper, extracts from which
were made available on Saturday, Scholz fleshed out proposals
that he was considering jointly with France to make it harder
for international firms to evade tax.
Both countries are seeking ways to ensure that firms like
Amazon, Apple and Google pay
domestic taxes in proportion to the profits they earn in
Europe's largest markets, though attempts to harmonise tax rates
across the European Union have met stiff resistance from
lower-tax members like Ireland.
"We need a worldwide minimum tax level that no state may go
below," Scholz said in the article, adding that any such rules
would need to be accompanied by measures to make it harder to
move money into tax havens.
Scholz said the internet economy "was exacerbating a problem
that we recognise from globalisation and that we are trying to
address: the placing of profits in low-tax locations."
Germany, Europe's largest consumer market, is particularly
fertile ground for U.S.-based internet giants, many of which
have used offshore structures to minimise their tax exposure to
what remains a relatively high-tax economy.
(Reporting by Thomas Escritt; Editing by Adrian Croft)
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