Photo: ODT filesA tax expert is warning the G7 proposal to establish a digital services tax could have implications for some of New Zealand's biggest companies. Finance ministers from some of the world's biggest economies have met in London to settle on an agreement designed to stop multinational companies avoiding tax. Secondly, they want a global minimum tax rate (15 percent) so as to avoid countries undercutting each other with low tax rates. "Not being drawn into a competitive downward spiral in corporate tax is a great thing," Trade Minister Damien O'Connor said. In 2018, the government announced it was looking at introducing its own digital services tax, which would work in much the same way the new tax announced by G7 is aimed at doing.

Source: Otago Daily Times June 07, 2021 04:30 UTC