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Taxation: USA

Question for Treasury

UIN 3977, tabled on 19 May 2021

To ask the Chancellor of the Exchequer, if the Government will use its presidency of the G7 to ensure the US Administration's proposed Made in America Tax Plan is on the agenda for discussions at the UK 2021 G7 summit in Cornwall.

Answered on

24 May 2021

The Government welcomes the US administration's renewed commitment to reaching a two-pillar solution reforming the international tax framework through the OECD, and it is optimistic that an agreement can be reached.

The OECD proposals to update the international tax framework have been under negotiation for a number of years and the UK has been at the forefront of these talks.

A global minimum tax (Pillar 2) is an important part of the package being developed by the OECD and the UK has been working with other countries on this initiative for a number of years.

The Government supports agreement on a global minimum tax. It is also crucial that this is agreed alongside changes to profit allocation rules (Pillar 1). Pillar 1 is vital to ensure large digital businesses pay more tax in the UK, commensurate with their economic activities.

The Chancellor has made supporting progress towards a two-pillar solution a priority of the UK’s G7 presidency. As such, he has regular discussions with his G7 counterparts on these issues.

Given that these discussions are still in progress and important details are still subject to international negotiation, it would not be appropriate for the Government to provide detailed impact assessments.

Answered by

Treasury
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