"Amazon, Google and Facebook will be hit hard by the G-7 tax deal, here\u2019s how they responded"

" \n The world\u2019s biggest tech companies are facing a corporate tax avoidance crackdown after the Group of Seven most developed economies agreed to a historic deal . \n \n\n \n The G-7 on Saturday backed a U.S. proposal that calls for corporations around the world to pay a minimum 15% tax on profits. The reforms, if finalized, would affect the world\u2019s largest companies with profit margins of at least 10%. \n \n\n \n Looking ahead, the G-7 hopes to achieve a wider agreement on the new tax proposals next month at a gathering of the expanded G-20 finance ministers. \n \n\n \n Asked whether Amazon and Facebook would be among the companies targeted by the proposal, U.S. Treasury Secretary Janet Yellen said she believes they would \u201cqualify by almost any definition.\u201d \n \n\n \n Here\u2019s how America\u2019s tech giants reacted to the news: \n \n\n \n Amazon \n \n\n \n Amazon said the agreement \u201cmarks a welcome step forward\u201d in efforts to \u201cbring stability to the international tax system.\u201d \n \n\n \n \u201cWe hope to see discussions continue to advance with the broader G20 and Inclusive Framework alliance,\u201d an Amazon spokesperson told CNBC by email. \n \n\n \n Read: US recovers millions in cryptocurrency paid to Colonial Pipeline ransomware hackers \n \n\n \n The Organization for Economic Cooperation and Development\u2019s Inclusive Framework is a group of more than 100 countries and jurisdictions aiming to tackle the use of \u201cgaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity,\u201d according to the OECD website . \n \n\n \n Facebook \n \n\n \n Nick Clegg, Facebook\u2019s vice president for global affairs, welcomed the deal and said the social networking giant \u201chas long called for reform of the global tax rules.\u201d \n \n\n \n The agreement is a \u201csignificant first step towards certainty for businesses and strengthening public confidence in the global tax system,\u201d Clegg tweeted Saturday. \n \n\n \n \u201cWe want the international tax reform process to succeed and recognize this could mean Facebook paying more tax, and in different places.\u201d \n \n\n \n Google \n \n\n \n A spokesperson for Google told Sky News the company strongly supported the initiative and hoped for a \u201cbalanced and durable\u201d agreement. \n \n\n \n Apple wasn\u2019t immediately available for a comment on the G-7 agreement when contacted by CNBC. \n \n\n \n The tech tax debate \n \n\n \n Tech giants have long been criticized for paying little in taxes despite\u00a0their size. Amazon and other companies have been accused of avoiding taxes by shifting revenue and profits through tax havens or low-tax countries. The companies\u00a0insist\u00a0they\u2019re doing nothing wrong from a legal standpoint, which is why policymakers are calling for reforms. \n \n\n \n Amazon infamously paid no U.S. federal income tax in 2018 , despite booking more than $11 billion in profits. The low tax bill stemmed largely from tax cuts in 2017, carryforward losses from years when the company wasn\u2019t profitable, and tax credits for massive research and development investment and share-based employee compensation. \n \n\n \n Some countries, such as Britain, France and Italy, have introduced\u00a0a\u00a0digital services\u00a0tax\u00a0in an effort to rake\u00a0in more cash from large tech firms. The aim was to implement a solution for the interim while global officials hash out details for international tax rules. \n \n\n \n Also: Asantehene supports the perfection of leases to enable businesses access bank loans \n \n\n \n But this has led to friction with the United States, which under President Donald Trump\u2019s administration threatened to impose tariffs on French goods over the issue. \n \n\n \n Meanwhile, some analysts have argued the deal doesn\u2019t go far enough , while others said there was a long road ahead. \n \n\n \n George Dibb, head of the Centre for Economic Justice at the London-based Institute for Public Policy Research, described the deal as a \u201cmajor step forward,\u201d but said there were still \u201cbig questions\u201d surrounding the minimum tax level. \n \n\n \n \u201cWe would like to see something a lot closer to 25%,\u201d he told CNBC on Monday. \n \n\n \n \u201cThe Biden administration came into these negotiations with an opening offer of 21% but I think the big fight at the G-7 over Friday and Saturday was over the wording, about whether it would say \u201915%\u2032 or \u2018at least 15%\u2019 and because we have that wording now of \u2018at least 15%\u2019 the door is still open for negotiation,\u201d he told \u201cSquawk Box Europe.\u201d \n "

"Amazon, Google and Facebook will be hit hard by the G-7 tax deal, here\u2019s how they responded"

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