Countries would implement a minimum corporate tax to avoid revenue losses, says Yellen

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U.S. Treasury Secretary Janet Yellen sits to testify before a Senate Finance Committee hearing on President Biden’s 2023 budget, on Capitol Hill in Washington, U.S., June 7, 2022. REUTERS/Evelyn Hockstein/File Photo

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TORONTO, June 20 (Reuters) – U.S. Treasury Secretary Janet Yellen said on Monday that once some countries start implementing a global minimum tax on multinational companies, other countries with a Lower corporate taxation should follow or risk losing tax revenue.

“When some countries go for this (minimum corporate tax) and put these taxes into effect, more and more countries will see that it is in their interest to join,” Yellen said in a discussion. with Canadian Finance Minister Chrystia. Freeland in Toronto.

Some 136 countries reached a global agreement in October 2021 to ensure that large companies pay a minimum tax rate of 15% and make it harder for them to avoid taxation, but such a tax has yet to been implemented anywhere.

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Reporting by David Lawder in Toronto and Ismail Shakil in Ottawa; Editing by Lisa Shumaker

Our standards: The Thomson Reuters Trust Principles.

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