OECD Going After Evading Multinationals

The Organization for Economic Cooperation and Development wants to prevent schemes that allow using different jurisdictions in order to avoid paying tax where the activity is being carried out.

Thursday, January 24, 2013

An article in DF.cl reports that "The Organization for Economic Cooperation and Development (OECD) has prepared a report, commissioned by the G20, which will be presented in early February to launch changes in international tax regulations that prevent multinationals from exploiting loopholes in order to pay very little tax by declaring profits in tax havens. "

The chief prosecutor of the OECD, Pascal Saint Amans, said: "We have to change international tax rules" because it has been found that devices like the price of transfers between different branches of a company located in different tax jurisdictions are not working well, there are abuses and it even allows the transfer of profits in a legal way. "

The official acknowledged that no figures have been calculated, but "the problem has become more acute" with the globalization of the economy, and it has been particularly acute in a period of crisis in which states have to deal with a small tax collections, with companies which are paying very little tax.

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