G20 leaders analyze risks and uncertainties to the global economy
The President of the European Commission is awaited with some expectation vis-Ã -vis the recent scandal about granting tax privileges to multinationals, when he was head of the Government of Luxembourg.Jean-Claude Juncker wants to put on the table the question of how to get greater tax harmonisation at European level. Multinational companies like Amazon, Apple and Ikea are some of the targeted by tax avoidance, that is, use legal schemes of distorted shape to pay less taxes than due.This Summit takes place under a strong safety because several demonstrations are expected to protest against the increase of poverty and social inequality around the globe.The G20 represents 90% of the world's wealth, two-thirds of the population and four-fifths of international trade. Pascal Saint-Amans/organisation for economic co-operation and development (OECD/PSA): "it was not a surprise. Some countries have created specific rules for taxation of multinationals. In the case of Luxembourg, but did so in a little transparent and therefore what we propose in this G20 Summit is to make these rules more transparent. These are global companies that deal with national Governments, to apply its sovereignty. This creates a problem of regulation. When this does not exist there is also no legal answers to solve the problems. This is not good because it forces you to raise taxes from local businesses, who do not have how to transfer their profits elsewhere. Soon, we need to harmonise this area in order to ensure the same kind of treatment for both local companies and multinationals. We must put an end to these levers and limit distortions, which is also good for investment ".PSA/OECD: "are two separate issues and we should not confuse them. One of them is the banking secrecy and it is true that the G20 has taken this project in 2009 and now there is no agreement concerning the automatic exchange of banking information, including countries such as Luxembourg, Switzerland, Singapore and Hong Kong. All countries committed themselves to Exchange banking information automatically from 2017 or 2018. Taxation schemes have nothing to do with banking secrecy. What we propose at this Summit is to make sure that these systems are more transparent, through the exchange of information between the various tax authorities. Are two separate issues, and thanks to the G20 are achieving major progress ".PSA/OECD: "we are not in favour of raising taxes on multinational corporations. It is necessary to continue to have low taxes on the income of companies. We are also in favour of eliminating double taxation of cross-border investments, but this must not result in the so-called "double non-taxation". The current situation allows multinational companies to transfer legal and easily, its profits to jurisdictions where no exercise and activity that don't charge taxes. Is that correct? It's not! This fiscal policy is wrong and is due to the fact that there are many shortcomings in the international tax structure ".PSA/OECD: "thanks to the support of the leaders of the G20 have advanced rapidly. We are able to review the international tax structure in just two years: 2014/2015. As regards automatic exchange of banking information, we proposed the reference framework and we will introduce you to the G20 leaders. The countries around the world have committed themselves to implement this new system in 2017 or 2018. That's practically tomorrow! "
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