Which of the following statements is/are correct with reference to the corporate tax deal by G7 countries?
A. The first decision that has been ratified is to force multinationals to pay taxes where they operate so as to counter tax avoidance.
B. The second decision in the agreement commits states to a global minimum corporate tax rate of 15% to counter the possibility of countries undercutting each other to attract investments.
C. Both A & B
D. None of these
Explanation:
The Finance ministers meeting of G7 grouping in London agreed to combat tax evasion by requiring corporations to pay taxes in the countries where they do business. The first decision that has been ratified is to require multinational corporations to pay taxes in the countries where they operate. The agreement’s second conclusion commits governments to a worldwide minimum corporate tax rate of 15% in order to prevent countries from undercutting one another.
