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UK Wants City Of London Be Exempt From G7 Global Tax Plan: Reports

UK Wants City Of London Be Exempt From G7 Global Tax Plan: Reports
Britain is trying to get an exemption for the City of London from a proposed new global minimum corporation tax system that was adopted by the Group of Seven (G7) economies during last weekend, claimed a report published by the Financial Times reported.
Arguing that the proposed new taxation system could affect global banks with headquarters in London, the United Kingdom was among those countries pushing "for an exemption on financial services", said the report quoting sources with knowledge of the talks.
The report added that the UK has raised the issue at the G7 talks in London.
There was no comment on the issue available from the UK treasury.
The argument that is expected to be put forward by the UK while making the demand for exemption form the new proposed tax system, is that the City of London should be kept exempt from the plan at the time when the proposal will be discussed between leaders of the G-20 countries 20 next month, said the FT report.
"Our position is we want financial services companies to be exempt and EU countries are in the same position," the report quoted one British official as saying.
Last weekend, a landmark agreement was reached between the United States, Britain and other large and rich countries aimed at trying to bring out more taxes from multinational companies through the imposition of a minimum global corporate tax rate of at least 15 per cent.

Christopher J. Mitchell

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