Cairns, Australia: France and other countries within the Group of 20 are pushing for an agreement to stop the unfair use of tax breaks, known as “patent boxes”, used to encourage innovative firms, Finance Minister Michel Sapin said on Sunday at a G20 meeting in Cairns.
“Patent box” are tax breaks on profits generated from patented research, and have become a popular instrument used by countries to attract pioneering firms.
Critics say some governments use them to unfairly poach such companies, and obtain lucrative future tax revenue from them.
“There is increasing pressure, notably from Germany, the United States, France and Italy, to iron out an agreement around patent boxes,” Sapin told a press briefing.
The French minister went on to say that some countries -— the United Kingdom, the Netherlands, Ireland and Spain — had taken heed and modified their use of patent boxes.
“We have a clear message for those lagging behind. We wish them to be evolving so that they don’t contravene tax arrangements,” said Sapin.
