New bid to reform global tax rules
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.