G20 Backs Crackdown On Tax Avoidance

Leaders of the world’s largest economies ratcheted up the pressure on tax avoidance by backing “an ambitious and comprehensive” plan to crack down on multinationals that shift profits into low-tax countries, the Irish Times reported. The G20 countries also stepped up the assault on evasion, with plans to exchange tax information automatically between themselves by the end of 2015 and calling “on all other jurisdictions to join us by the earliest possible date”. The countries endorsed an action plan to close corporate tax loopholes that was drawn up by the Paris-based Organisation for Economic Co-operation and Development (OECD) in the wake of public anger over tax planning used by multinationals such as Google and Apple to minimise their payments. They also urged countries to examine how their tax rules contributed to profit-shifting. Read more.