India is seemingly positioned to be at loggerheads with the United States of America on the latest decision by Group of Seven (G7) countries to back a proposal for creating a common global corporate tax structure for multinationals, according to a report by MoneyControl. What is this proposed corporate tax structure? On May 5, G7 countries which include United States, Japan, Germany, Britain, France, Italy and Canada, introduced a proposal for a global corporation tax rate that said that countries should tax their homegrown companies' overseas profits at least 15 per cent. This was brought in seemingly to close cross-border tax loopholes used by world's biggest companies, said a report by Reuters. The report said that this accord would form the basis of a global pact next month. This proposal has also been aimed at ending a decades-old race in which countries have competed to attract corporate giants with low tax rates and exemptions, the report added. The 47th G7 summit is set to take place in Cornwall, United Kingdom, on June 11–13. Who are the intended targets of this proposal? According to Indian Express, digital giants such as Apple, Alphabet and Facebook shell out low effective rates of tax. The report said that these companies rely on subsidiaries to profit out of major markets into low tax countries such as Ireland, or Caribbean nations such as the British Virgin Islands or the Bahamas. India's annual tax loss due to such corporate tax practices is around $10 million. The USA…
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