G7 global tax plan may hit corporate titans unevenly

G7 global tax plan may hit corporate titans unevenly

LONDON- An agreement by wealthy nations aimed at squeezing more tax out of large multinational companies could hit some firms hard while leaving others - including some of the most frequent targets of lawmakers' ire - relatively unscathed, according to a Reuters analysis. Finance ministers from the Group of Seven leading nations on Saturday agreed on proposals aimed at ensuring that companies pay tax in each country in which they operate rather than shifting profits to low-tax havens elsewhere. One proposed measure would allow countries where customers are based to tax a greater share of a multinational company's profits above a certain threshold. The ministers also agreed to a second proposal, which would levy a minimum tax rate of 15% of profits in each overseas country where companies operate, regardless of profit margin. The Reuters review of corporate filings by Google-owner Alphabet Inc suggests the company could see its taxes increase by less than $600 million, or about 7% more than its $7.8 billion global tax bill in 2020, if both proposed measures were applied. Google is among the companies that some lawmakers have criticized as paying too little tax. Meanwhile, medical group Johnson & Johnson, which is also U.S.-based,