Tax avoidance talk push from G20 nations
INSTITUTIONAL investors from three countries that are G20 members have called on this week’s summit to ensure transparency and disclosure are part of the G20’s talks on tax avoidance.
The investors, including multi-billion dollar companies from the United Kingdom, Canada and France, and non-G20 nation The Netherlands, made the call on Wednesday.
A joint statement from the investment firms called on the G20 to endorse an OECD plan to improve global tax transparency and disclosure laws.
It comes after revelations last week that several multinational firms were avoiding tax, including Ikea in Australia, and concerns the G20 talks will go as far as demanding full disclosure.
United Kingdom Local Authority Pension Fund Forum chairman Kieran Quinn said modernising the global tax framework was inseparable from financial integrity and “rebuilding trust”.
“As international investors, ensuring sound governance practices are embedded in corporate activities, including taxation planning and associated reporting and disclosure mechanisms is a fundamental concern,” he said.
“Financial secrecy, opaque accounts and aggressive tax practices do not best meet our underlying objectives as inter-generational investors aiming for sustainable value creation.”
The G20 is expected to discuss international tax avoidance strategies used by numerous global corporations and its role in corruption during meetings later this week.
