Thread by @EdConwaySky

Breaking: G7 has now agreed a deal on tackling corporate tax avoidance by the tech giants. "It's a proud moment" says Chancellor @RishiSunak. More on @skynews soon

Full details to come in a communique soon but my understanding of main points:
1: new tax rules for firms with 10pc profit margins. Above that, 20pc of profits to be reallocated based on a formula involving sales. Will affect abt 100 firms.
2: global minimum corp tax rate of 15%

While the deal is certainly less ambitious than many wanted (eg 15% not 21%, only 100 companies covered by new rules) there’s no disputing this is a big moment. Global biz tax rules date back a century to the League of Nations. This is the most meaningful step to reform them yet

Still some questions: how will the rules work in practice and will they just encourage a different kind of avoidance? And will other countries sign up - esp those with tax rates below the 15% minimum (and if not what sanctions will apply to them?). Here's @Paschald recently:

https://twitter.com/edconwaysky/status/1397229976433401866

Reaction from French finance minister @BrunoLeMaire here: "this is a historic moment... we have shown that the G7 powers are capable of setting international rules for the 21st century"

And here is the full G7 finance ministers communique: gov.uk/government/pub…