Ministers and bankers from the 19 richest countries and the European Union are meeting at St Mark's Square, Venice, in person for the first time since February 2020. AFP
Ministers and bankers from the 19 richest countries and the European Union are meeting at St Mark's Square, Venice, in person for the first time since February 2020. AFP
Ministers and bankers from the 19 richest countries and the European Union are meeting at St Mark's Square, Venice, in person for the first time since February 2020. AFP
Ministers and bankers from the 19 richest countries and the European Union are meeting at St Mark's Square, Venice, in person for the first time since February 2020. AFP

Global tax reform tops agenda of G20 meet in Venice


  • English
  • Arabic

G20 finance ministers will gather on Friday in Venice, with global tax reform top of the agenda as the world's biggest economies seek to ensure multinational companies pay their fair share.

Under Italy's Group of 20 presidency, ministers and central bankers from the 19 richest countries and the European Union are meeting in person for the first time since talks in Riyadh in February 2020, at the start of the coronavirus pandemic.

US Treasury Secretary Janet Yellen, European Central Bank chief Christine Lagarde and Russian finance minister Anton Siluanov are among those gathering under tight security in Venice.

However, China and India have opted for a virtual presence in the lagoon city, where the Arsenal area has been closed off from tourists and locals for the two-day event.

The countries of the G20 have already signed up to a framework for reform agreed on July 1 among members of the Organisation for Economic Cooperation and Development, notably for a global minimum corporation tax rate of 15 per cent.

But they are now seeking a political deal that will help make the agreement – aimed at ending tax havens and stopping global companies benefiting as nations compete to offer the lowest rates – become a reality.

The minimum rate is one of two so-called pillars of global tax reform that have been under negotiation for years.

The other aims to tax multinationals where they make their profits, not where they are headquartered, and is particularly aimed at technology giants such as Google, Amazon, Facebook and Apple, who pay derisory levels of tax compared to their income.

According to a draft obtained by AFP of the final statement, which is still being discussed, the finance ministers in Venice will "endorse" the OECD's "historic agreement on a more stable and fairer international tax architecture".

Be realistic

Final agreement on the minimum tax rate is not expected until the run-up to the G20 leaders' summit in Rome in October.

But the Venice talks are an opportunity to thrash out further details and exert pressure on those who have not yet signed up to the OECD deal, which so far has been backed by 131 countries.

EU members Estonia, Hungary and Ireland, which have all used low tax rates to attract investment, are among the hold-outs.

The proposed global tax reforms aim to tax multinationals where they make their profits, not where they are headquartered. AFP
The proposed global tax reforms aim to tax multinationals where they make their profits, not where they are headquartered. AFP

Several countries by contrast are pushing for a higher rate than 15 per cent, notably the US and Germany, but there are few illusions about their chances.

"We must be realistic," said a German government source. "Other countries already have a problem with this level."

Even if a minimum rate is implemented, this would not necessarily mean the end of tax havens, said Giuliano Noci, professor of strategy at Milan's Polytechnic business school.

"The rates fixed by different countries can still vary significantly, and so fiscal optimisation remains at the heart of the strategy of technology giants and other multinationals," he said.

Even if a minimum rate is implemented, this would not necessarily mean the end of tax havens
Giuliano Noci,
professor of strategy at Milan's Polytechnic business school

Support for vulnerable countries

The G20 ministers in Venice are also expected to support an initiative by the International Monetary Fund to increase aid to the most vulnerable countries through the allocation of $650 billion of special drawing rights.

SDRs are international reserve assets created by the IMF that provide these countries with extra liquidity.

According to the draft G20 statement, the Venice participants will call for "contributions from all countries able to do so to reach an ambitious target in support of vulnerable countries" – without fixing an amount.

IMF chief Kristalina Georgieva warned this week of a "deepening divergence" between rich and poor nations, warning the Covid-19 pandemic and the resulting economic damage had dealt a "devastating double-blow" to the poorest countries.

The specs

Engine: 3.8-litre twin-turbo flat-six

Power: 650hp at 6,750rpm

Torque: 800Nm from 2,500-4,000rpm

Transmission: 8-speed dual-clutch auto

Fuel consumption: 11.12L/100km

Price: From Dh796,600

On sale: now

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Signs%20of%20%20%20%20%20%20%20heat%20stroke
%3Cul%3E%0A%3Cli%3EThe%20loss%20of%20sodium%20chloride%20in%20our%20sweat%20can%20lead%20to%20confusion%20and%20an%20altered%20mental%20status%20and%20slurred%20speech%3C%2Fli%3E%0A%3Cli%3EBody%20temperature%20above%2039%C2%B0C%3C%2Fli%3E%0A%3Cli%3EHot%2C%20dry%20and%20red%20or%20damp%20skin%20can%20indicate%20heatstroke%3C%2Fli%3E%0A%3Cli%3EA%20faster%20pulse%20than%20usual%3C%2Fli%3E%0A%3Cli%3EDizziness%2C%20nausea%20and%20headaches%20are%20also%20signs%20of%20overheating%3C%2Fli%3E%0A%3Cli%3EIn%20extreme%20cases%2C%20victims%20can%20lose%20consciousness%20and%20require%20immediate%20medical%20attention%3C%2Fli%3E%0A%3C%2Ful%3E%0A
While you're here
Terminator: Dark Fate

Director: Tim Miller

Starring: Arnold Schwarzenegger, Linda Hamilton, Mackenzie Davis 

Rating: 3/5

Updated: July 09, 2021, 7:23 AM`