Minister Martín Guzmán will propose to the G20 to bring the global tax on multinationals from 15% initially thought to 21%. It is an initiative promoted by the largest countries in the world to raise funds to combat inequalities.
“It is a historic debate. But the 15% tax is very low, very insufficient. We defend no less than 21% and, if it were 25%, it would be even better, “Guzmán said in a teleconference debate organized by the NGO Independent Commission for the Reform of International Corporate Taxation.
The Group of Seven (G7), from rich countries, has announced “a historic agreement to reform the taxation of multinationals to ensure that digital giants pay their fair share and introduce a global minimum tax to end the race to the bottom, “the organization said.
But the Argentine minister upped the ante. “We need fiscal and structural reforms. Greater asymmetries are being seen between advanced economies and the rest of the countries due to the pandemic. It is necessary to advance with norms that resolve the asymmetries “, indicated Guzmán.
The Organization for Cooperation and Development (OECD) will bring together delegates from 139 countries this week to discuss the initiative that will be presented to the G20 finance ministers between July 8 and 10 in Venice.
The NGO noted that “globally, lTax evasion diverts 40% of foreign profits from companies to tax havens “.
Nigerian Finance Minister Zainab Ahmed participated in the debate. Argentina and Nigeria make up the Group of 24 (G24), a group of countries from the Global South.
“The pandemic deepened inequalities and the asymmetries between advanced countries and the rest, and the need to solve the problem of tax avoidance of multinationals is even greater. Today taxing multinational corporations is a necessity, “said the minister.
“The global corporate minimum rate of 15% is too low. There is a substantial risk that it will actually end up being the maximum rate. From Argentina we consider that a 21% rate would be better, a 25% rate even better“, he remarked.
He also indicated that “we are also promoting globally an adaptation in the credit lines of multilateral organizations that adapt to current challenges that require long-term solutions. For Argentina, within the framework of the current multilateral commitment, it will be imperative to discuss a reasonable way to consider the application of unilateral tax measures. “
“There is an opportunity to achieve something historic, this is the moment. We see asymmetries between countries, especially in times of pandemic, in terms of the capacity for structural transformation. And how can we finance that transformation? With more tax revenue solving the problems of evasion and avoidance by multinationals “, he pointed out.
“If a multilateral compromise is achieved, it will be imperative for Argentina to find a reasonable way to consider the application of unilateral tax measures. This simply responds to a question of power relations, which is why it is so important for developing countries to unite,” he said. Guzman.