Milan, June 28 (LaPresse) – The Canadian G7 presidency announced that an agreement has been reached on the global minimum tax that would have affected major U.S. multinationals, adopting the U.S. proposal of a "parallel" solution. Under this solution, "groups controlled by U.S. companies would be exempted from the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR), in recognition of the existing U.S. minimum tax rules to which they are subject." This was reported by the Canadian Ministry of Finance. Following discussions on the matter, "a shared view emerged that a parallel system could preserve the significant progress made by jurisdictions under the Inclusive Framework in tackling base erosion and profit shifting, and ensure greater stability and certainty for the international tax system in the future," the statement reads. The Ministry of Finance explains that "establishing a parallel system will facilitate further progress toward stabilizing the international tax system, including constructive dialogue on the taxation of the digital economy and the safeguarding of fiscal sovereignty of all countries."
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