Exclusive: communique from ministers suggests deal only applies to ‘profit exceeding a 10% margin’, which could rule out Amazon Experts have raise

Global G7 deal may let Amazon off hook on tax, say experts

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2021-06-07 04:30:06

Exclusive: communique from ministers suggests deal only applies to ‘profit exceeding a 10% margin’, which could rule out Amazon

Experts have raised concerns that Amazon may escape paying significantly more tax in some of its biggest markets unless world leaders close a large loophole in a historic global deal.

Finance ministers in London from the G7 group of wealthy nations, including representatives of the UK, US and EU, on Saturday agreed the landmark deal aimed at making the biggest companies such as Apple, Microsoft, Google and Facebook pay more tax.

The two “pillars” of the deal would make companies pay a percentage of their profits in markets where they make large sales despite minimal corporate presence, as well as setting an unprecedented global minimum corporation tax.

However, a communique from G7 ministers said that they envisaged pillar one would only apply on “profit exceeding a 10% margin for the largest and most profitable multinational enterprises”, a restriction that could rule out Amazon.

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