G7 Cornwall Global Corporation Tax Rate Agreed

Published / Last Updated on 07/06/2021

As the G7 Summit hits Cornwall this week, locally down at our Head Office in Newquay, we are bracing ourselves for road closures, protestors on their way with our own son already involved as part of the Devon & Cornwall Police security operations down in St. Ives.

G7 involves the largest 7 economic nations of Canada, France, Germany, Italy, Japan, UK and USA but also now the EU has a seat as well as 4 guest countries and leaders have been invited:  Australia, India, South Africa and South Korea.

The summit does not officially start until Thursday 11th June.   It is Monday 7th June today and already cavalcades of large blacked out vehicles have been seen exiting airports, RAF bases and on the road, no doubt carrying the press, security services, civil servants and the ‘Sherpas’.

What are the Sherpas?

These are the ‘advance guard’ i.e. the civil servants that draft agreements before the leaders attend conferences to sign.  The focus at G7 will be a global vaccination programme, corruption, trade and climate change focusing on a globally green recovery.

Sherpas At Work Already:

Today we have already heard the announcement that G7 members have agreed a minimum global corporation tax rate.

G7 members have agreed a minimum corporation tax rate of 15%.  Many countries will charge more but with a minimum it starts to block countries like Ireland with a corporation tax rate of just 12.5% and unfairly attracting the major share of international businesses based in Ireland and able to trade throughout Europe.  We wonder how Switzerland will fair (whilst not part of the EU) they are within the European Economic Area (EEA) for trade and charge just 8.5% corporation tax.

Corporation tax will be paid were profits are earned.  It is unfair that major online services, coffee chains and more should make billions of profit inside the UK or indeed Europe and then pay little or no taxes here of there.  They will now be taxed where they trade.  This we suggest is no bad thing.

More to come from G7 later this week and next no doubt.

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