G20 report warns of global tax chaos [View all]
Source: Guardian
Governments risk "global tax chaos" as they chase dwindling revenues from multinational companies unless the international tax regime is radically overhauled, according to a report commissioned by the G20 group of nations.
On Thursday the chancellor, George Osborne, will hail a two-year action plan drawn up by the OECD thinktank to clamp down on questionable international corporate tax practices.
The long-awaited report, prepared for a meeting of the G20 finance ministers in Moscow this weekend says "a bold move by policy makers" is necessary to prevent a worsening in the position. The OECD calls it "a turning point in the history of international co-operation on tax".
The report sets out 15 separate actions the international community needs to take to modernise a tax system established in the 1920s. It argues the international tax system is outmoded and unequipped to deal with mobile multinational firms that have found innumerable ways of avoiding tax often by shifting profits to low-tax countries.
Read more: http://www.guardian.co.uk/world/2013/jul/19/g20-report-warns-global-tax-chaos
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