On June 5, 2021, the Group of Seven (G7) leading industrialized nations agreed on a historic global tax deal. The agreement aims to minimize corporate tax avoidance by multinational companies and level the playing field for businesses worldwide. The G7 countries involved were Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

Under the deal, the G7 nations have agreed to a global minimum corporate tax rate of at least 15%. This would ensure that tech giants such as Google, Facebook, and Amazon pay their fair share of tax, wherever they operate around the world. Currently, these companies are able to manipulate their global tax structures to minimize their tax liabilities.

The G7 deal would also authorize countries to tax large multinationals based on their sales in that country, regardless of where they have offices or factories. This could lead to a redistribution of taxing rights, where countries with large markets, such as the United States and Germany, gain more taxing rights over tech giants that generate significant revenue in their countries.

The global tax deal is a significant achievement as it marks the first time that seven of the world`s wealthiest nations have come together to agree on a coordinated approach to tax reform. However, the global tax deal is not yet a done deal. The G7 nations must now convince other countries of the merits of the agreement before it becomes law.

The G7 global tax agreement has been welcomed by organizations such as the International Monetary Fund (IMF), which has stated that the agreement could deliver significant benefits to countries worldwide. The IMF has also called for more ambitious global tax reforms to ensure that countries with less taxing power also benefit.

In conclusion, the G7 global tax agreement is a significant step forward in the fight for tax fairness and transparency. The agreement could help to reduce tax avoidance and level the playing field for businesses worldwide. However, with further negotiations and discussions to come, the deal is far from finalized, and the wider international community`s support will be crucial in seeing it through.