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G20 vows to combat corporate tax avoidance

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Author Topic: G20 vows to combat corporate tax avoidance  (Read 211 times)
Psalm 51:17
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« on: February 16, 2013, 01:35:06 pm »

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http://www.bbc.co.uk/news/business-21481932

2/16/13


G20 finance ministers meeting in Moscow have pledged to crack down on tax avoidance by multinational companies.

The final communique said members were determined to develop measures to stop firms shifting profits from a home country to pay less tax elsewhere.

The UK, France and Germany were the main movers behind the drive.

The communique also said members would refrain from devaluing their currencies to gain economic advantage, amid fears of a new "currency war".

The fears had been sparked by Japan's recent policies, which have driven down the value of the yen, aiding its exporters.

'Strongly determined'
 
A recent survey carried out by the Organisation of Economic Co-operation and Development (OECD) found that multinational firms could exploit gaps between tax rules in the different countries in which they operate.

The finance ministers of the UK, France and Germany - George Osborne, Pierre Moscovici and Wolfgang Schaeuble - said international action was needed to crack down on companies which transfer profits from their home country to another in order to pay lower taxes.

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