OECD Global Minimum Corporation Tax: The Challenges for the UK

On June 5th 2021, the Group of Seven (G-7) nations reached a landmark agreement, supporting the creation of a global minimum corporate tax rate of at least 15% on multinational companies. This feeds into the existing efforts of the Organization for Economic Cooperation and Development (OECD). Later in July 2021, the G-20 also backed this proposal, with the deal set to be finalised in October 2021. It is said that this will ensure a fairer distribution of profits and taxing rights among countries with respect to the largest MNEs, alongside seeking to put a floor, and multilaterally agreed limitations, on tax competition on corporate income tax. Whilst there are suggested merits in agreeing commons rules on the taxation of multinational companies, what are the challenges that this suggested accord poses on the UK? Are there any practical problems with this new proposal? Considering the pandemic, is this the right approach to ensure economic recovery, both in the short and long term?