Cantillon: no escape from tax talk at G20 summit
Leaders of world’s major economies gather in Turkish city of Antalya
Leaders of the world’s major economies gather in the Turkish city of Antalya this weekend for the tenth annual G20 summit. The summit takes place at a sensitive moment in international affairs. The war in Syria and the resulting crisis, Russia’s commencement of aerial bombardment in Syria, and Turkey’s uncertain role in the Middle Eastern conflict unfolding at its borders provide a challenging backdrop to this year’s two-day summit and ensure a significant political dimension. But economics will also feature.
The global macroeconomic landscape will be high on the agenda, with leaders expected to highlight the need to prioritise investment in order to reach the 2 per cent global economic growth target agreed in Brisbane last year.
The slowdown in emerging economies, and particularly in China, which will take over the rotating presidency, will also preoccupy minds. The issue of taxation is also expected to feature, just a month after the OECD published its landmark BEPS proposal. The European Union, which has a seat at the G20 table, will lead calls for a global approach to tax transparency. In their joint letter to leaders ahead of the G20 European Commission president Jean-Claude Juncker and European Council head Donald Tusk have called for “an ambitious agreement to take further global actions necessary to tackle cross-border tax avoidance and tax evasion, including on the finalisation and implementation of the Base Erosion and Profit Shifting action plan (BEPS).
“The G20 should in particular show political leadership on the issue of harmful tax competition and the exchange of information on cross-border tax rulings to enhance transparency,” they write.
Though Ireland is not a member of the G20, the continuing preoccupation of the EU on the issue of corporate tax transparency will be closely watched from Dublin.
Last month’s EU agreement on the automatic exchange of tax rulings is just one in a series of measures the Juncker Commission is set to introduce during its tenure. A new proposal on the Common Consolidated Corporate Tax Base (CCCTB) next year will be the next battle front.
With the outcome of the Apple investigation also due before long, it seems tax is likely to stay high on the EU’s agenda for the foreseeable future. Ireland’s long battle to hold on to its tax advantages for multinationals is set to continue.
