G20 to target loopholes which allow multinationals avoid paying tax

The G20 has backed afundamental rethink of the rules on taxing multi-national companies, taking aim at loopholes used by firms such as Apple and Google to avoid billions in taxes.

The group of leading economies released an action plan drawn up by the Organisation for Economic Co-operation and Development (OECD) that said the existing system didn’t work, especially when it came to taxing companies that trade online.

“People and companies have to pay the taxes that are due. It’s the only way to operate in a fair and competitive society,” said George Osborne, Britain’s finance minister, at a news conference on the sidelines of a meeting of G20 finance ministers in Moscow.