Prime Minister David Cameron has responded to the launch of the Organisation for Economic Co-operation and Development (OECD)’s Action Plan on Base Erosion and Profit Shifting (BEPS), which commits to set out new rules on tax transparency.
This follows a request by the G20, supported by G8 leaders at the Lough Erne Summit hosted by the Prime Minister, for the OECD to produce a comprehensive action plan for the reform of the international tax system. Domestic and international actions will address BEPS.
The plan, which will be rolled out over the next 2 years, will give governments the tools to prevent corporations from paying little or no taxes.
Tax is one of the key priorities for G8 2013 – find out why with our tax factsheet.
Speaking about the OECD Action Plan, the Prime Minister said:
This report shows how taxpayers, governments and businesses all suffer when some companies manipulate the tax system to avoid paying their fair share of taxes. And it highlights how much we still have to do to bring the international tax system, conceived back in the 1920s, into the 21st century.
That’s why I put the issue at the heart of our G8 agenda. I’m delighted that the OECD have risen to the challenge we set at Lough Erne: committing to set out by next September new rules for a common template that will require multinationals to disclose where they earn their profits and where they pay their taxes.
At the G20 Summit in St Petersburg in September, I will call on fellow leaders to get behind this action plan to ensure that we break down the walls of corporate secrecy, once and for all, and that all companies pay their fair share.
More information about Base Erosion and Profit Shifting is here.