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Cameron Urges Discussion On Effective Tax Planning At G8

Cameron Urges Discussion On Effective Tax Planning At G8
25 Jan 2013

First Published by AFP and APP, 24 January 2012

British Prime Minister David Cameron has been speaking out about the taxation of multinationals at the World Economic Forum in Davos today. Cameron has warned that global businesses must "pay their fair share" of taxes and hopes that other countries will follow Britain's example after their announced crackdown on multinationals such as Starbucks, Google and Amazon last year.

Mr Cameron hopes to use Britain's chairmanship this year of the Group of Eight rich nations to push for cross-border action on tax avoidance.

"Clamp down in one country and the travelling caravan of lawyers, accountants and financial gurus just moves on elsewhere. So we need to act together at the G8," Cameron said.

He insisted such moves were not anti-business, and shouldn't deter corporates from investing in Europe.

"I believe in low taxes... I'm a low-tax Conservative. But I'm not a companies-should-pay-no-tax Conservative," Cameron said. "Individuals and businesses must pay their fair share."

German Chancellor Angela Merkel also notes, "Every financial instrument, every financial product, every financial market, needs to be placed under regulation."

"We are very far from that and I can only call on the financial industry to support us on this because another bubble that we create would bring another crisis for the global economy, which would be very difficult to overcome," she added.

Taxand, the world's largest independent global organisation of specialist tax advisors to multinational businesses, hit back saying that harmonisation of rules was not necessarily the best solution to tax fraud.

Discover Taxand's commentary in full

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Taxand's Take

Multinationals should enter into talks with the relevant tax authorities "to obtain prior agreements for a particular initiative or investment. It is this, as opposed to a pursuit of harmonisation, that perhaps poses the best way forward".

Taxand's Take Author