How Will Amazon and Facebook Be Affected by the G-7 Tax Agreement?

  How Will Amazon and Facebook Be Affected by the G-7 Tax Agreement? Giant Companies Are Looking For Ways To Avoid Tax Pressure! After the G-7 group, which accounts for 64 % of global wealth, accepted a historic deal, the world's largest technology companies came under tax pressure. The G-7 on Saturday supported a US proposal that required companies around the world to pay taxes of at least 15 % of their profits. This is expected to affect huge companies operating with profit margins of at least 10 %. The G-7 hopes to achieve greater consolidation with new tax laws at its meeting with the world's top 20 finance ministers (G-20) next month. When asked whether Amazon and Facebook would be among the targeted companies, US Treasury Secretary Janet Yellen replied, "It will apply with any qualified company that fits the definition." she replied.

The Responses of American Technology Giants to this Regulation are as follows;

Amazon

“It is a welcome step forward in efforts to stabilize the international tax system,” Amazon AMZN (NASDAQ) $3.349,65 +68,50 (+%2,09) said of the regulation. “We hope to see the G20 and Organization for Economic Co-operation and Development's Inclusive Framework discussions continue to move forward,” an Amazon spokesperson said via email. " In fact, the Organization for Economic Cooperation and Development's Inclusive Framework is known to be a wise group of more than 100 countries and jurisdictions. According to the OECD website, “Economic activity is used to artificially understate profits and shift profits to tax-free places, with gaps and mismatches in tax rules. “

Giant Companies Are Looking For Ways To Avoid Tax Pressure!

Facebook

Nick Clegg, Facebook's vice president of global affairs, said they welcomed the deal, adding that he "has long called for reforms in global tax rules." "This is an important first step towards strengthening public confidence in businesses and the global tax system," its statement said. “We want the international tax reform process to be successful, we also recognize that this could mean Facebook  FB (NASDAQ) $332,46 +2,21 (+%0,67) paying more taxes in different places,” Nick concluded.

Technology Tax Debate

Tech giants are at the forefront of criticism for paying much less tax despite their volume. As it is known, Amazon and other large companies are strongly accused of evading taxes by shifting their income and profits through low-tax countries called tax havens. While corporations insist that they have done nothing wrong legally, politicians are not giving up on their call for tax reform for good reason.  

Source: www.cnbc.com

 

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