G7 Minimum Tax Pact Shows Vow to Curb Profit Shifting, OECD Says

An understanding reached by the Group of Seven nations over the global minimum tax represents a sustained commitment to work together and limit profit shifting, the OECD said in a progress report to the G20 finance ministers.

The US and its G7 allies in June announced an “understanding” that two of three key enforcement rules in the global minimum tax framework wouldn’t apply to American companies.

In exchange for exempting US companies from key parts of the Pillar Two framework, the Trump administration agreed to ask Congress to remove the so-called revenge tax, formally known as Section 899, from Republicans’ ...