Giant multinationals face higher taxes following G20 meeting
A plan drawn up by the Organization for Economic Cooperation and Development (OECD), which would crack down on tax avoidance by giant multinationals, was introduced and supported by the G20 finance ministers at meeting in Moscow on Friday. The plan would target companies such as Amazon, Starbucks, and Google, who have been accused of paying far less taxes than they are due.
“International tax rules, many of them dating from the 1920s, ensure that businesses don’t pay taxes in two countries – double taxation. This is laudable, but unfortunately these rules are now being abused to permit double non-taxation,” said the OECD’s secretary general, Angel Gurría.
“National tax laws have not kept pace with the globalization of corporations and the digital economy, leaving gaps that can be exploited by multinational corporations to artificially reduce their taxes,” the OECD said in a statement.
“This will help governments identify risk areas and focus their audit strategies. And making dispute resolution mechanisms more effective will provide businesses with greater certainty and predictability,” the OECD said.