OECD Urges Stronger International Co-operation on Corporate Tax |
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An OECD study commissioned by the G-20 - Addressing Base Erosion and Profit Shifting (BEPS) - finds that some multinationals use strategies that allow them to pay as little as 5% in corporate taxes when smaller businesses are paying up to 30%. OECD research also shows that some small jurisdictions act as conduits, receiving disproportionately large amounts of Foreign Direct Investment compared to large industrialized countries and investing disproportionately large amounts in major developed and emerging economies. "These strategies, though technically legal, erode the tax base of many countries and threaten the stability of the international tax system," said OECD Secretary-General Angel Gurria. "As governments and their citizens are struggling to make ends meet, it is critical that all tax payers - private and corporate - pay their fair amount of taxes and trust the international tax system is transparent. This report is an important step towards ensuring that global tax rules are equitable, and responds to the call that the G-20 has made for the OECD to help provide solutions to the global economic crisis." Login to Read or Click Here for Membership First |