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.



More on this topic

France's Grey List: Guatemala Out, Panama Continues

January 2020

The French government reported that it removed Guatemala from the list of countries that do not cooperate with the exchange of fiscal information, but kept Panama.

The European country's authorities reported that Guatemala was removed from the list because it ratified the convention on mutual administrative assistance in tax matters of the Council of Europe and the Organization for Economic Cooperation and Development (OECD).

Costa Rica Tax Information Exchange for Multinationals

January 2016

Along with 31 other countries Costa Rica has signed an international agreement that supports the automatic exchange of information on multinational companies.

From a press release issued by the OECD:

27/01/16-As part of continuing efforts to boost transparency by multinational enterprises (MNEs), 31 countries[1] signed today the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country reports. The signing ceremony marks an important milestone towards implementation of the OECD/G20 BEPS Project and a significant increase in cross-border cooperation on tax matters.

Costa Rica Ratifies Agreement on Fiscal Transparency

April 2013

The agreement includes the exchange of information on request, automatic exchange, simultaneous tax examinations and assistance in the collection of tax debts.

Costa Rica has deposited its instrument of ratification of the Convention on Mutual Administrative Assistance in the field of taxation, the broadest multilateral agreement ever regarding tax cooperation and information exchange.

Guatemala Wants Out of OECD’s Grey-List

April 2010

The country has exchanged texts with seven countries to sign double taxation agreements.

Additionally, the Public Finances Ministry has invited Pascal Saint-Amans, head of the Tax Transparency Forum at the Organization for Economic Cooperation and Development (OECD), to visit the country.

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