Corporate tax dodgers in sights

TOM PULLAR-STRECKER
Last updated 05:00 19/02/2013

Relevant offers

World

Honeylab medicalā€grade kanuka honey a vanguard for pharmaceutical honey industry Google CEO Sundar Pichai sees the end of computers as physical devices Box of 'original' flavoured Arnott's Shapes selling on eBay for $60 Carl Icahn warns 'day of reckoning' approaches, sells entire Apple stake Venezuela declares 2-day workweek due to severe electricity shortages Drug-maker hands out world's highest chief executive pay package Australia's human guinea pigs in demand from Asia for clinical trials Hanes makes play for Australia's Pacific Brands SpaceX says it will fly a spacecraft to Mars as soon as 2018 Gorman under fire over Instagram post featuring Chinese factory workers

Finance Ministers from the G20 meeting in Moscow have backed a drive by the Organisation for Economic Co-operation and Development to stamp out tax avoidance by multinationals.

The BBC reported the G20 agreed to set up three committees to consider changes to tax law, including one jointly chaired by France and the United States that will look at how to identify the correct tax jurisdiction for business activities, particularly e-commerce.

An OECD report published last week said corporate income tax, which contributes 10 per cent of the total tax take within the OECD, was under threat from multinational tax avoidance.

French Finance Minister Pierre Moscovici told the BBC that France was "strongly determined to fight against tax fraud, tax avoidance, and tax evasion".

"We must avoid situations in which some companies use international and domestic law to be taxed nowhere."

New Zealand Revenue Minister Peter Dunne backed the OECD project in December, in the wake of media reports that highlighted very low rates of tax paid by Google and Facebook. He said international co-operation meant "the days of large multinationals escaping taxation will be numbered".

The BBC identified Amazon, Google, Starbucks and Facebook as among companies whose tax structures were under the spotlight.

A Google spokesman responded last week that the company "was aware of the discussion within the OECD and happy to contribute as appropriate".

The G20 ministers said in their Moscow communique that they looked forward to being presented with a "comprehensive action plan" in July.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content