Recently, Canada and the other members of the G7 forum jointly announced plans to implement a "side-by-side system" that would seek to preserve the global progress to implement rules to ensure large multinational enterprises (MNEs) pay a minimum rate of tax under the Organisation for Economic Co-operation and Development's (OECD) Pillar Two framework, while also addressing U.S. concerns about these rules. Under this new approach, U.S.-parented groups would be exempt from certain Pillar Two rules on the basis they are already subject to U.S. minimum tax rules. The G7 statement, which was issued on June 28, 2025, represents a shared understanding by G7 member countries Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
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