Yellen, EU Trade Chief Talk Tax Reform, Bid To Stop 'Race To Bottom' Treasury Dept.

US Treasury Secretary Janet Yellen held a call with European Trade Commissioner Valdis Dombrovskis to discuss international tax reforms and to halt the practice of governments undercutting each other on tax rates, the Treasury Department said Tuesday

WASHINGTON (UrduPoint News / Sputnik - 28th September, 2021) US Treasury Secretary Janet Yellen held a call with European Trade Commissioner Valdis Dombrovskis to discuss international tax reforms and to halt the practice of governments undercutting each other on tax rates, the Treasury Department said Tuesday.

"Secretary Yellen emphasized the importance of advancing global tax reform efforts in the OECD/G20 discussions on international taxation and expressed that the Biden-Harris Administration is pleased with the progress the U.S. Congress is making to strengthen the US international tax rules," a Treasury readout of the call said.

It added that Yellen also expressed her appreciation to Dombrovskis and the European Commission for their dedication "to leveling the playing field to end the race to the bottom in global corporate taxation".

The talks came as Yellen continued to lobby international authorities to revamp the global tax system and create a more equitable structure to prevent countries from shrinking tax rates and deregulating the business environment to attract large multinational businesses to concentrate operations on their soil.

The Group of Seven countries agreed in June to impose a global minimum tax on corporate foreign earnings. The pact was later supported by 134 countries representing more than 90% of the world's gross domestic product.