Accounting Standards

IFRS issues support for G7 global tax deal

The international body’s agreement set out to tackle tax abuses by multinationals and online technology companies, signing up to a minimum global corporate tax rate for the first time ever

The International Financial Reporting Standards (IFRS) Foundation has issued its support for the recently announced global tax deal from the G7.

The international body, made up of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, agreed to tackle tax abuses by multinationals and online technology companies as part of the economic response to the Covid-19 pandemic.

Each country signed up to a minimum global corporate tax rate, the first of its kind.

Furthermore, finance ministers from G7 countries met on 5 June and issued a Communique that mentioned the ongoing work of trustees to consider the creation of a new sustainability board within the governance structure of the IFRS Foundation.

Erkki Liikanen, the chair of the IFRS Foundation trustees, said: “We welcome the G7 finance ministers’ support for our work to develop the global baseline of sustainability-related financial disclosures and our ongoing dialogue with key stakeholders regarding the proposed establishment of an International Sustainability Standards Board ahead of COP26.”

 

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