Major economies are aiming to discourage multinationals from shifting profits – and tax revenues – to low-tax countries regardless of where their sales are made.Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.The G7 accord feeds into a much broader, existing effort. The Organization for Economic Cooperation and Development has been coordinating tax negotiations among 140 countries for years on rules for taxing cross-border digital services and curbing tax-base erosion, including a global corporate minimum tax.The G7 hopes to reach a final agreement at the July gathering of the expanded G20 finance ministers group, it added. If a broad consensus is reached, it will be extremely hard for any low-tax country to try and block an agreement.
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