G-20 to plug tax loopholes of tech giants

US Treasury Secretary Steven Mnuchin (right, on podium) delivering a speech during the G-20 Ministerial Symposium on International Taxation in Fukuoka, Japan, yesterday. PHOTO: REUTERS
US Treasury Secretary Steven Mnuchin (right, on podium) delivering a speech during the G-20 Ministerial Symposium on International Taxation in Fukuoka on June 8, 2019.PHOTO: REUTERS

Group of 20 finance ministers meeting in Japan agreed yesterday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a copy of the bloc's draft communique showed.

"We will redouble our efforts for a consensus-based solution with a final report by 2020," the draft said.

Britain and France have been vocal proponents of proposals to tax big tech companies, focusing on making it tougher to shift profits to low-tax jurisdictions. While the US has expressed concerns, US Treasury Secretary Steven Mnuchin said yesterday it was time to forge ahead and negotiate an agreement.

A version of this article appeared in the print edition of The Sunday Times on June 09, 2019, with the headline 'G-20 to plug tax loopholes of tech giants'. Print Edition | Subscribe