Push for multinationals to pay fair tax

Last updated 10:12 06/11/2012

Relevant offers

World

One Blackberry closes 450 start-ups open Major US cable TV merger backed Euro hedge funds booming Yellen bares her teeth on financial regulation Bridgestone executive in court China's credit falls, money supply slows Citigroup income up, concerns remain Mexico cracks down on financial kingpins Murdoch Jr's $30m superyacht calls Aussie shares being manipulated

Britain and Germany are leading a push in the Group of 20 economic powers to make multinational companies pay their "fair share" of taxes following reports of large firms exploiting loopholes to avoid taxes.

British Finance Minister George Osborne said at a G20 meeting in Mexico City on Monday that discussions showed there was "widespread support" for the joint initiative.

"We want to make sure that we are successful economies which are the home of international businesses but that international business pay the taxes that we expect them to pay," Osborne told a joint news conference with German Finance Minister Wolfgang Schaeuble.

The two nations said international tax standards have struggled to keep up with changes in global business practices and that some companies have been able to shift taxation of profits away from where they are generated.

In October, a Reuters report showed Starbucks had legally lowered its UK tax bill with inter-company loans, paying royalty fees to foreign subsidiaries and allocating money made in the UK to other units in so-called "transfer pricing".

British Prime Minister David Cameron said last month he was unhappy with the level of tax avoidance by big companies.

A German finance ministry spokesman said France was backing the drive, which Germany and Britain plan to push forward during Russia's presidency of the G20 next year.

Schaeuble told reporters in Mexico City he was hopeful the initiative would get a "lot of support".

Ad Feedback

- Reuters

Comments

Special offers

Featured Promotions

Sponsored Content