ICC responds to G7 deal on taxation

ICC Secretary General John W.H. Denton AO has issued a statement in reaction to a G7 deal on taxation.

ICC Secretary General John W.H. Denton AO said:

“Effective international tax reform is a matter of considerable importance to global business. This must serve the dual need of restoring public finances and reinvigorating local economies in the wake of COVID-19. International coherence will play a pivotal role in meeting these imperatives.

“Today’s commitment from the G7 is a very welcome step forward in this regard — but we ultimately need to see a final deal that is workable once applied to the real economy. And, what’s more, common rules that will command support way beyond the G7 and G20. Emerging economies should have a full stake in determining the tax rules that will apply to them under any future global framework.

“Moreover, as we’ve emphasised before, it is imperative that a strong process for arbitration and dispute resolution is built into any final framework to mitigate the risks of a damaging proliferation of double taxation disputes.

“ICC looks forward to working with the OECD and all governments to support the conclusion of a meaningful global pact on tax reform in the coming weeks.”