SYDNEY – The G20 has pledged to implement new cooperative measure to help fight the occurrence of international tax evasion.
The countries of the G20 have confirmed their support of the OECD’s Action Plan to fight Base Erosion and Profit Shifting (BEPS), and within a matter of months will collectively outline steps to enforce stronger tax information sharing standards, according to a communique released on February 23rd following a meeting of Finance Ministers of G20 countries.
As a direct result of the discussions held at the meeting, by November 2014 all member nations “…will start to deliver effective, practical and sustainable measures to counter BEPS” in order to enforce the fundamental principal, which all G20 countries have agreed to follow in the future, that “…profits should be taxed where economic activities deriving the profits are performed and where value is created”.
During the meeting it was also finally agreed that banks and financial institutions should be required to provide automatic exchange of information to tax authorities, and the initial steps for the implementation of such rules will be outlined by the G20 by September 2014.
Photo by: Emilian Robert Vicol