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G8 Summit: world leaders agree to crackdown on corporate tax dodgers

G8 Summit: world leaders agree to crackdown on corporate tax dodgers
Global
24 Jun 2013

This article was first published in CFO Innovation Asia, 19 June 2013

At the recently concluded G8 summit in Northern Ireland, world leaders reached an agreement to work together to tackle money-laundering and to close loopholes that allow multinational corporations (MNCs) to avoid paying taxes in their home countries.

“After much hype, the G8’s proposals around tax have been an anticlimax,” commented Taxand, the tax advisory group. “While agreement on international transparency protocols and measures to combat tax evasion and aggressive tax avoidance were anticipated the G8 outcomes appear to be broad declarations and a lack of tangible actions.”

Frédéric Donnedieu de Vabres, chairman of Taxand, commented that current tax laws have attracted criticism as politicians focus on their negative effects, but there has been a lack of credible alternatives.

“There are many choices, but not many will feasibly work,” added  Donnedieu de Vabres. “What is clear is that any reform needs to be carefully thought out and subjected to a rigorous tax benefit analysis before implementation.

“The global economy can ill afford yet another set of changes which will divert multinationals’ resources from investing in the parts of the business that employ people and produce goods and services.”


Your media contact for further queries is:
Barnaby Fry, MHP
T. +44 (0)203 128 8215
E. taxand@mhpc.com

This article was first published in CFO Innovation Asia, 19 June 2013

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