G20 to put squeeze on tax-diddling big tech firms

Business

G20 to put squeeze on tax-diddling big tech firms

Global bloc of finance ministers agrees to close loopholes Facebook and co use to cut tax bills

Stanley White and Jan Strupczewski

Group of 20 finance ministers agreed on Sunday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a final version of the bloc’s communique obtained by Reuters showed.

Facebook, Google, Amazon and other large technology firms face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. Such practices are seen by many as unfair.

The new rules would mean higher tax burdens for large multinational firms but would also make it harder for countries like Ireland to attract foreign direct investment with the promise of ultra-low corporate tax rates...

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