G-20 Backs Plan to Curb Tax Avoidance by Large Corporations
By ANDREW E. KRAMER and FLOYD NORRIS, NYT
MOSCOW — The world’s richest economies for the first time endorsed a blueprint on Friday to curb widely used tax avoidance strategies that allow some multinational corporations to pay only a pittance in income taxes.
It could be years before any changes take place in national tax laws and big corporations and other interest groups are sure to lobby heavily to preserve their tax breaks. But the proposal was the most concrete response yet to the intensifying pressure on governments around the world to address the issue.
The governments have strong motivation for change. They are starved for revenue and face citizenry who see inequity in a system that enables some highly profitable corporations to pay far lower tax rates than workers.
In one widely cited example, Starbucks last year paid no corporate tax in Britain despite generating sales of nearly £400 million ($630 million) from more than 700 stores in that country. Apple, despite being the most profitable American technology company, avoided billions in taxes in the United States and around the world through a web of complex subsidiaries.
(More here.)
MOSCOW — The world’s richest economies for the first time endorsed a blueprint on Friday to curb widely used tax avoidance strategies that allow some multinational corporations to pay only a pittance in income taxes.
It could be years before any changes take place in national tax laws and big corporations and other interest groups are sure to lobby heavily to preserve their tax breaks. But the proposal was the most concrete response yet to the intensifying pressure on governments around the world to address the issue.
The governments have strong motivation for change. They are starved for revenue and face citizenry who see inequity in a system that enables some highly profitable corporations to pay far lower tax rates than workers.
In one widely cited example, Starbucks last year paid no corporate tax in Britain despite generating sales of nearly £400 million ($630 million) from more than 700 stores in that country. Apple, despite being the most profitable American technology company, avoided billions in taxes in the United States and around the world through a web of complex subsidiaries.
(More here.)
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