On June 5, 2021, the Finance Ministers and Central Bank Governors of the G7 countries issued a Communiqué announcing their agreement on the conceptual framework for a substantial revision to global tax policy (the “Communiqué”). The Communiqué puts the G7’s stamp of approval on recent efforts by the OECD (supported by a big push by the Biden administration) toward finalizing the broad architecture of the OECD’s Pillar One and Two models. The Communiqué will form the basis of continued negotiations by the Inclusive Framework (IF) on June 30 and July 1, followed by final negotiations by the G20, which meets on July 9 and 10, at which time the G7 hopes that a final agreement will be reached.
But there is still much work to do to flesh out the details of the framework. In our recent article, we unpack the Communique’s discussion on taxes and provide our perspective on what has been agreed to and our observations on what issues remain and whether they can be resolved.
Also, on July 15, we will be hosting a webinar to discuss these developments and an analysis of the Biden administration’s international tax proposals that complement some of the G7 proposals.