Author: Fernando C. Saldivar, S.J.
Fernando C. Saldivar, “Is a Bad Deal Better than No Deal? A Perspective from Africa on the G7’s Agreement to Restructure International Corporate Taxation,” Ethics & International Affairs, November 2021, https://www.ethicsandinternationalaffairs.org/2021/is-a-bad-deal-better-than-no-deal-a-perspective-from-africa-on-the-g7s-agreement-to-restructure-international-corporate-taxation/.
On June 5, 2021, the G7 finance ministers reached a landmark agreement to restructure the global system of corporate taxation, the first major reform of the system in nearly a century. While this has been widely hailed as a breakthrough toward a more equitable way of taxing the digital economy and a triumph of multilateralism in the first year of the post-Trump era, the truth is much more complicated than it seems, particularly for countries in Africa and the Global South. For developing countries, the G7 proposal is only the first step on the long road to tax justice and addressing the structural inequalities in the international tax system.