Global tax deal ‘will end the race to the bottom’, says Yellen

US secretary of the treasury Janet Yellen speaks during a press conference at a G20 economy, finance ministers and central bank governors’ meeting in Venice, Italy (Luca Bruno/AP)

US treasury secretary Janet Yellen has said that deterring the use of tax havens will let countries compete on economic fundamentals – instead of by offering ever-lower tax rates that deprive governments of money for infrastructure and education.

Ms Yellen spoke after finance ministers from the Group of 20 (G20) major economies endorsed a global minimum corporate tax of at least 15%, a measure aimed at putting a floor under tax rates and discouraging companies from using low-rate countries as tax havens.