The Netherlands in favor of the G7 plan to abolish tax havens

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The interim cabinet expressed support for the plan of the seven major economies of the Group of Seven to introduce a minimum global corporate tax rate of 15%. This initiative was introduced with the aim of reducing tax evasion around the world.

The plan would force tech giants like Apple, Facebook, Google and Amazon to pay taxes in the countries where they generate their income. Currently, they only have to pay taxes in countries where they are located where tax evasion is possible.

The strategy will also end the so-called “race to the bottom” in which countries compete to keep their tax rates as low as possible to attract business. The deal was signed on Saturday in London by finance ministers from the Group of Seven countries, namely Canada, France, Germany, Italy, Japan, the United States and the United Kingdom.

The outgoing cabinet said it was satisfied with the deal: “The Netherlands supports these plans. In this way, we can effectively fight tax evasion, ”Secretary of State for Finance Hans Villbreev said on Twitter.

Villebrew also said he was working to implement the deal in the European Union as soon as possible. All G7 countries already have a corporate tax rate of 15 percent, but in the European Union there are some countries below this level. Corporate tax rates in Ireland and Cyprus are only 12.5% ​​and in Hungary only 9%.

The Netherlands is also known as a tax haven for large companies. Big companies like Netflix and the four biggest tobacco companies British American Tobacco, Philip Morris, Japan Tobacco and Imperial Brand have used shell companies in the Netherlands to evade taxes.

Earlier this week, Philbreve told De Nieuws BV that if companies start paying more taxes, the average citizen could be lowered.

Source: https://dodofinance.com/