For four decades, global corporate tax rates have fallen in an international “race to the bottom”, allowing big multinationals to reduce their burden by funnelling profits through low-tax jurisdictions. This weekend’s deal between G7 finance ministers offers a game-changing opportunity to reverse that process — and ensure companies are visibly making a fair contribution to the post-pandemic recovery. For it to succeed, the world’s largest economies more broadly will need to sign up. But it is in their own interest to do so.
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