Japan criticises US in G20 gathering for digital tax proposal

Taro Aso, Japanese finance minister criticised the United States in recent meeting happened of G20 on Sunday a tax reform proposal by United Sates. In one of the statements given by Aso, he said that they could destabilize the global efforts to accept new rules on taxing for the top tech companies.

According to the new developing rules and regulations passed by the Organisation for Economic Cooperation and Development (OECD), digital companies needs to pay tax where they are doing business instead of where the subsidiaries registered by them. This movement was widely endorsed by finance leaders present in the meeting of the Group of 20 (G20) major economies on Sunday. Due to the last moment demand of Washington, OECD efforts were stalled late last year.  In new proposal by US, A ‘safe harbour’ rule was included in the proposal where critics said that multinational companies need to choose whether they are ready to stand by the new list of rules or stick to existing regulations.

After the G20 gathering, Aso told to the reporters in an interview that he expressed his counterparts that they are very concerned about the new regulation ‘safe harbour’ proposal. He further joined the chorus of criticism by France and other nations over the United nation’s new rule proposal saying that, other countries have expressed the same that there will be having very less regulatory effect of what they are trying to do.

In the G20 meeting, many countries and officials have observed that the United State was hesitant to handle a potentially tricky political matter before the presidential election later this year.

Japan usually doesn’t openly criticise the United Sates’ proposal on economic policy.

On the weekend gathering of G20, Finance leaders discussed about the taxing of global several top digital firms such as Google, Amazon and Apple. They also discussed and figured importantly the effects of the coronavirus outbreak on the global economy.

Loretta Morfin

I am Loretta Morfin and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address: 3966 Euclid Avenue, San Luis Obispo, CA 93401, USA Phone: (+1) 805-361-3810 Email: lorettamorfin@importtourism.com