Saturday, September 20, 2014

The G20 tries to tackle tax avoidance of multinationals – Expansión.com

The G20 tries to tackle tax avoidance of multinationals – Expansión.com

The G20 will seek an agreement to implement a plan of action against tax evasion by multinational companies in the ministerial meeting that began today in Cairns (Australia) dedicated to promoting economic growth.

The negotiations focus on the plan against the erosion of the tax base and the movement of benefits (BEPS in English) prepared by the Organization for Economic Cooperation and Development (OECD) today introduced the first G20 package.

The OECD Secretary General Angel Gurria said that large companies do not pay taxes in the countries where they generate profits by artificially relocate the origin of their activity in countries that offer better tax treatment.

According to Gurria, the G20 has identified this avoidance and changes the origin of the benefits as a “grave threat” to the collection of taxes, fiscal sovereignty and justice systems around the world.

“We close loopholes that allow investors to channel their investments to other countries for access to the benefits of artificial treatises form of taxation,” Gurria said in press conference in Cairns before G20 meeting.

“The idea is to neutralize the coffers of these multinationals businesses have about 2 billion dollars (1.5 billion euros) in low-tax jurisdictions,” he added.

The first seven points of this plan of 15 chapters, this weekend will be discussed at the G20, provide for the design of a new tax treaty model and to ensure consistency of international payments of corporate taxes.

propose also prevent abuse of tax treaties by the tax realignment; implement actions to ensure that the value of the product prices are consistent with the values ​​of its creation; improve tax transparency; and address the challenges associated with the digital economy.

Gurria said about 40 countries are ready to implement these measures in 2017 and the rest could do it the following year.

Among the first to make a commitment is Australia announced their appearance in the same federal Treasurer, Joe Hockey.

“We want to pay taxes on profits made by Australia in Australia,” said Hockey, who denounced the ability multinational and high-income individuals to avoid or evade their tax obligations.

“We remain dissatisfied with prosecutors that some majors achieve results and develop creating a lopsided game field for small businesses and divert unfairly the tax burden on others, “said the Australian Treasurer.

Hockey emphasized the importance of including developing countries to benefit from the application of these measures and to prevent their territories used as tax havens.

Emerging “The main challenge to catch fraudsters is that we can not leave them nowhere to hide. That is the question. Thus, the unilateral action of one country will not get the job done, “insisted the Treasurer. Hockey and Gurría agreed on the need for” political leadership “to ensure the application of BEPS, whose first measures shall be adopted during the summit G20 leaders in Brisbane (Australia) in November.

The other eight measures were presented in 2015 at the meeting of the group in Turkey.

In addition to BEPS, finance ministers and central bank governors of the G20 discussed in Cairns about 900 proposals for policy initiatives to promote economic growth, job creation and infrastructure construction.

“We have a chance to change the fate of the economy world, “Hockey said in opening the meeting.

The G20 was established in February grew two percentage points above the forecast until 2018 to inject about 2 trillion (1.5 trillion euros) and create over 600 million jobs.

Hockey expressed confidence in achieving this goal although the OECD and Treasury Secretary of the United States, Jack Lew, warned this week of underachievement . economies of the eurozone and Japan

The meeting involved the Treasury Secretary, Jack Lew; the Spanish Economy Minister Luis de Guindos; Undersecretary of Finance of Mexico, Fernando Aportela; Secretary of International Affairs of Brazil, Carlos Márcio Cozendey; Secretary General of the OECD, Angel Gurría; and the director-general of the International Monetary Fund, Christine Lagarde, among others.

The G20 members are the European Union, the G7 (USA, Canada, Japan, Germany, UK, Italy and France ), Saudi Arabia, Argentina, Australia, Brazil, China, South Korea, India, Indonesia, Mexico, Russia, South Africa and Turkey. Spain attends meetings as the guest since 2010.

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