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Let’s get together and tax the tech giants, the G-20 officials are eying a $100 billion boost

RIYADH (Reuters) – Leading economies in the world, to show unity in dealing with aggressive tax optimisation” by the world’s digital giants, such as Google (GOOGL.(O), Amazon (AMZN.(O) and Facebook (FB.D), the G-20 officials said on Saturday.

FILE PHOTO: The Facebook logo is displayed on a mobile phone, it is in this image on 2 December 2019 at the latest. (REUTERS photo/Johanna Geron/Art RC2OND9JJLZ0/File Photo

The general rules have been developed by the Organisation for Economic co-operation and Development (OECD) for the creation of digital companies pay tax where they are doing business, rather than on where they enroll in the subsidiary companies. As the OECD says, this will lead to the improvement of the national tax revenues by a total of up to $100 billion per year.

The call for unity was aimed at the United States of america, the home of the largest tech companies in an effort to get out of the parking rules until after the U.s. presidential election in November.

“You don’t want to have to wait for the elections, the German Finance Minister, Olaf Scholz told a tax seminar on the sidelines of a meeting of G-20 finance ministers and central bankers.

“This must be the leadership in some countries,” Scholz said: “oh, don’t look directly at US, Minister of finance, Steven Mnuchin, who was sitting next to him at the seminar.

The taxation of digital businesses, and the effect of the corona virus outbreak on the global economy will be the hot topic for the G-20 finance chiefs from the world’s 20 largest economies, during their talks in Riyadh this past weekend.

The OECD also wants to have a minimal level of these companies would be responsible for seeking the agreement by the beginning of July, with the adoption by the G-20 by the end of the year.

“A co-ordinated response, it is not the better way to go, but given the alternatives, it is the only way forward,” the OECD head, Angel Gurria, told the seminar.

However, the OECD’s efforts were stalled last year due to last-minute changes demanded by Washington, but that many G-20 officials to see if they are reluctant to deal with a politically difficult issue for the supreme court.

Mnuchin said of the OECD countries were close to an agreement on minimum tax levels, which he said would go a long way to go to solve the problem of where tax is paid.

“I think we’re all going to want to do it by the end of the year, and that’s the goal,” Mnuchin told us at the seminar.

Several European countries, including France, Spain, Austria, the netherlands, Italy, great Britain and Hungary have already a plan for a digital tax to be able to work one of the of the risks of a highly fragmented global system.

“You can’t do in a global economy, and the various national tax systems that are in conflict with each other,” Mnuchin said.

Facebook Chief Executive Mark Zuckerberg said on a Feb. 14 that he would be willing to pay more taxes in Europe, and it would be like to be with a global OECD-based solution that charges will be uniform.

Additional reporting by Michael Nienaber, by Francesco Canepa, Leika Kihara and Jan Strupczewski; Writing by Jan Strupczewski; Editing by Pravin Char

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