In an analysis by Taxwatch comparing the G7 and G24’s proposals for taxation for tech giants and the digital services tax (DST) states that ‘it is in the best interests of the UK to support the proposals put forward by the G24 group and seek a higher allocation percentage’ rather than the G7’s proposals.

The analysis found that tech giants will ‘almost certainly’ pay less tax under G7 proposals to reform the global tax system than they are currently liable for under the digital services tax.

Under the OECD’s Pillar one proposals put forward by the G7, this is a mechanism to redistribute profits made by some of the world’s largest multinational companies to countries where they make revenues, such as the UK.

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