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00:00This is a very important maintain. You want to get this this deal on the table I approved. We know that there are a number of countries that do have an issue with both the relocation of profits and tax on that and also the rate. So what's going to happen come Sunday. Do we get a deal. Well look this has been a long process and know all G 20 countries have agreed to the fundamental framework for reform of international taxation arrangements as a result of the globalization and digitalization of our economies that it has created significant inequities in the way governments were able to raise the necessary revenue to fund the services that people expect and need. And you know the deal that is on the table now and that was agreed by 131 countries around the world through the obesity G 20 inclusive framework process is a very fair deal that will improve the system. And you know as secretary I know that the Irish government has said we could work with the relocation principle to tax in profits to the country where the services are made. But we can't agree to that 15 percent tax rate. Do you see a hybrid solution or this is a full package both need to be in. Well the reform that's in front of us has got two pillars and one is what you describe as the reallocation of taxing rights. But to ensure that the most successful and largest multinational companies also pay tax in the jurisdictions where that generates their profits and the markets where to generate profits. And that involves also many of the large digital multinational companies. And then there's the second pillar which involves the minimum global level of corporate taxation of at least 15 percent. And what that is designed to do is to put limits on the level of tax competition between different jurisdictions. I mean at the moment big companies in particular are able to structure their affairs to either pay no or very little tax. And that's not fair. It's not equitable. And it undermines the capacity of governments to raise the revenue they need to provide the services that people need. And so London 31 countries 90 percent of global GDP is behind this deal on the basis of at least 15 percent. So I can't see that there will be a change from that. I mean that's that's essentially locked in. The question is how this gets implemented in practice from here. And of course Ireland's very much continues to be engaged in the process and we continue to be engaged with Ireland. Right. So you make it very clear that on principle and this is the fair solution but also this is a two step solution on the tax and based on the country of service and the tax rate is a full package. So what of the Irish. And it's not just the Irish but also you know we have a number of other countries in Europe too that don't agree with us. Do you see this deal going through and be an effective way or G 20 countries including all the G 20 European countries in this deal have agreed to this deal. And so I guess moving forward it's a model of continuing to engage with the remaining eight countries out of funds and 39 that have not yet agreed. And the conversation will continue. And we're working towards the October deadline for a final final deal with all of the practical details resolved. And what feedback do you have from companies. Because the Irish could say look we don't agree with this. We don't want to lose the competitive advantage of tax. But if you see the companies saying we want to play ball and we're happy to play more well this is very much in those companies interests. I mean you know what we've been seeing in recent years is a proliferation of unilateral digital tax measures. And it's clearly not in the interests of large multinational companies to have to deal with different tax arrangements in different countries. I mean this is a multilaterally agreed consistent approach which provide certainty and stability. And quite frankly which also helps with the reputation of those companies in the markets in which they operate. So I mean it is a very good basis. It's good for the companies and it's good for governments around the world. And we've just got to continue the conversation with those countries that have not yet been able to fully agree. And you know in terms of pending details rolling into October we know that a lot of this will depend on the US Congress. It will also depend on countries in Europe that already have a tax on digital services to drop that and go for the OCD one. Do you see both happening. Is that going to be an issue. Well look I mean you know whenever there is a multilateral agreement the next very important step is domestic implementation including of course domestic legislative implementation. And that's going to be important all around. And I mean that's that's certainly true. And you know next week we're expecting the European Union to come up with more legislation on the digital front. The fact that we have a deal here and the Europeans are still to some extent doing things their way is that we're. Well I'm very I know for a fact that the European Union is very conscious of the importance of this deal of international tax reform. They're also very conscious of not doing anything that would undermine the success of that international tax reform. And I'm very confident that through further conversations between the US between Europe and all of the other stakeholders that sensible sensible way forward will be fun to see this create and tensions. The OCD members and go back to that EU versus the US because of the tax companies and this idea that we're going after American tech no does. There's very broad consensus around this international tax reform. I mean this is not just the G7 countries. It's not just the G 20 countries. It is a hundred and thirty one countries from around the world that have signed onto this through the inclusive framework process. So this is this has got broad comprehensive support and it's a fail multilaterally agreed approach. And you know just a very final question. You know of course some would argue that 15 percent sounds great but there's ways to make that in real life go below 15 percent. Are you sure we're going to see that effective rate stay at 15. Well you know if we end up implementing it successfully and effectively implementing a minimum corporate tax rate globally of at least 50 percent that is a significant step forward compared to where we are. And you know of course you know we'll have to see how it all works out in practice. And if there are issues down the track they'll have to be addressed at that point.

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OECD Sees Global Minimum Accord Improving Tax System: Cormann

Organization for Economic Cooperation and Development Secretary-General Mathias Cormann discusses the prospect of a global minimum tax ahead of the meeting of G-20 finance ministers. He speaks with Maria Tadeo on "Bloomberg Markets: European Close." (Source: Bloomberg)

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