New bid to reform global tax rules

Starbucks - criticised for taxation strategy

Britain, France and Germany are pushing for new measures to clampdown on multinational companies avoiding corporate taxes.

Calls for an overhaul of tax laws, including the controversial transfer pricing rules that were written almost 100 years ago, will be highlighted to finance ministers at the G20 in Moscow by the Organisation for Economic Co-operation and Development (OECD), which will present its report published this week.

A number of companies - including Google, Starbucks and Amazon - have come under fire in recent months over their taxation strategies

UK Chancellor George Osborne will announce that Britain will chair a new transfer pricing group which will look at how to reform the system which allows profits to be diverted to parent companies or to lower tax jurisdictions, via royalty and service payments.

It is one of three groups set up by the OECD to look at the tax issues which will help the group prepare a “plan of action” to be put forward to the G20 in July.

Germany and the US and France also lead the other two groups, which will include looking at how to determine tax jurisdiction, particularly in the context of e-trading.

Mr Osborne also wants to use Britain’s presidency of the G8 in 2013 to push international progress on the reform of international tax rules, which were first developed by the League of Nations in the mid-1920s and remain essentially unchanged.

More in this Section

FIFA 17's goals of the week round-up will have you drooling

Amazon files patent for mini-drone that could be used to help find your car

Dispute with small Belgian region sees Canada walk out of trade talks with EU

Ireland 'splurging on UK imports' since fall in value of sterling

Today's Stories

Sterling falls further as UK finances worsen

British American Tobacco bids €43bn for Reynolds American to create biggest tobacco company

UDG Healthcare shares rise on €94m acquisition

Providence Resources set to save €2.3m in legal costs


Scandinavian interiors’ shop takes over former Mothercare premises on Patrick's Street

Watch: Beeactiv honey scoops sweet award at Blás na hÉireann

4 sherry recipes for special occasions

Graham Norton on life off camera and his debut novel Holding

More From The Irish Examiner