It’s time for a global minimum corporate tax rate.
Business leaders letter to world leaders on corporate taxation
As business leaders we know first-hand how hard it is when certain companies have an unjust advantage over others. For many years, hardworking business owners have faced exactly this unfair competition on tax: some companies have managed to exploit loopholes in the global system, reducing their overall tax bill, while others have observed the spirit of the law and paid their fair share.
There have been years of discussion, at the highest levels of government, about how to deal with global tax avoidance. The recent proposal from the United States, of a minimum corporate tax rate of 21%, demonstrates a step in the right direction to ensure that all companies pay their taxes. This would begin to deliver a level playing field and show that global collaboration for a fair approach is possible.
International negotiations, led by the OECD and G20, are reaching a critical moment this summer. It is the responsibility of all countries engaged to get a deal. The G7 in the UK is an important milestone. As business leaders we are looking to the UK Government, as host of the G7, and other Heads of State, to support proposed efforts to achieve global corporate tax reform, including a 21% minimum tax rate.
Businesses should succeed not because they cut corners or avoid paying their fair share of tax, but because they build fantastic teams and products. Paying our fair share means that we, as businesses, benefit from strong public investments. We want to support efforts to build a better, and more sustainable world after the pandemic. To do this we must make sure there is a level playing field and no company is excused from paying their fair share.
The Signers