Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Sunak urged to back Biden corporate tax plan ‘worth £13.5bn a year’

Campaigners say US global blueprint would help raise billions from multinationals and tech giants

Rishi Sunak has been urged to throw his full weight behind US proposals for a global minimum corporate tax rate after analysis showed it would bring in an extra £13.5bn a year for the public purse.

The campaign group Tax Justice UK said the Biden administration plan would help raise billions of pounds a year for the UK exchequer by hitting multinationals and US tech companies operating in the country with higher tax bills, including firms such as Amazon, Apple, Google owner Alphabet and Facebook.

Under the US blueprint, the world’s 100 most profitable multinationals would be forced to pay taxes to national governments based on the sales they generate in each country, irrespective of where they are based. It would also establish a global minimum tax rate to help bring an end to profit-shifting by multinationals and discourage countries from undercutting each other on tax rates. Washington has suggested a rate of 21%.

Finance ministers from across Europe – including from Germany, France and the Netherlands – have welcomed the US intervention as a signal that significant global progress can be made on tackling tax avoidance by big companies and digital firms.

However, tax campaigners said the UK government had been silent on the US plans, and urged the chancellor to give his full backing to Washington. The Labour shadow chancellor, Anneliese Dodds, also said Britain needed to play a leading role.

“Now that President Biden has moved the debate on, it’s important that our government moves to play its part,” she said.

Paul Monaghan, chief executive of the Fair Tax Mark campaign group, said other big European countries and the International Monetary Fund had responded publicly to the plan. “But we’ve heard nothing from Boris Johnson or Rishi Sunak in the UK as yet,” he said.

“The world has a once in a generation opportunity to embed tax justice and eradicate profit-shifting. It’s vital the UK steps up to the plate and publicly backs what the US and other progressives are trying to do.”

It is understood the UK Treasury recognises the need for an agreement on a global minimum tax rate as part of negotiations taking place at the Organisation for Economic Co-operation and Development (OECD), which is coordinating talks on tax reform between 135 nations.

However, sources said ministers wanted to make sure any solution was balanced and appropriately targeted, while also pointing to a track record of UK leadership on global tax reforms through the launch of a digital services tax last year. Designed as an interim measure before a global deal can be reached, the levy targets the British revenues of search engines, social media services and online marketplaces, and is similar to arrangements in France, Italy and Spain.

A Treasury spokesman said: “We welcome the US administration’s renewed commitment to reach a global solution this year.”

“Updating the international tax rules to ensure that digital businesses pay more tax in the UK, in line with their economic activities, remains a UK priority, and we will continue to work openly and constructively with international partners to develop a consensus-based solution.”

Negotiations at the OECD are expected to centre on the threshold for determining which companies are in scope, as well as the rate for a global minimum. Although aiming for a deal by mid-2021, significant hurdles remain given the lower corporate tax levied by some nations. EU members vary from as low as 9% in Hungary and 12.5% in Ireland to 32% in France and 31.5% in Portugal.

Tax Justice UK said establishing a minimum rate would bring substantial benefits, including more tax revenue for the exchequer, and addressing public anger at tax avoidance by major companies.

According to research for the group by international experts, setting the global rate at 15% would bring in an extra £8.2bn a year for the UK government, while a rate of 20% would generate £13.5bn.

Setting the minimum at 25%, the level at which Sunak will peg the UK’s domestic corporate tax rate at from 2023, up from a current level of 19%, would bring in an estimated £22.3bn, while a rate of 30% would raise £31.6bn annually.

Robert Palmer, executive director of Tax Justice UK, said: “The government should stand up and support these proposals. The UK and its tax haven network have long promoted a global race to the bottom on corporate taxes – this needs to end.”

Comments

Oh ya 4 year ago
Yup the bankrupt US government now wants to set tax rates in the entire world. The world needs to tell the US to get stuffed. Anything the US does around the world is for their gain not anyone else's

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×