OECD, EU countries plan to share tax data in effort to curb tax avoidance

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Tax avoidance

OECD polities, including Canada, signed a deal to share tax information on multinationals in an elbow-grease to curb tax avoidance. The EU is proposing its own plan to share information. (Shutterstock)

The European Commission organizes to step up efforts to tackle tax avoidance, including a proposal for tax authorities to dispensation information on the tax profile of multinational com nies.

Saying billions of euros are misspent every year to “aggressive tax planning” by multinationals, the European Commission envisions to close tax loopholes and scrutinize special “sweetheart” tax deals offered by some provinces.

The idea is to make it harder for firms to hide money in tax havens or portray one country’s tax authority against another.

The proposals include:

  • Recommending route to block the most common tax avoidance methods.
  • Recommendations to member submits on how to prevent tax treaty abuse.
  • A proposal to share tax-related information on multinationals in the EU.
  • Cant third countries that refuse to play fair.

Thirty-one countries in the OECD signed a deal on Wednesday for their tax authorities to share report on global com nies.

Canada signs to OECD plan

Canada is a signatory to the traffic and will begin sharing information by September 2018.

U.K. Chancellor George Osborne has put forwarded that such information be made public, to put pressure on the com nies embroiled with.

European Union authorities in Brussels also said they were adroit to investigate the British government’s tax deal with Google, which has been appraised for not demanding enough from the internet giant.

After a six-year scrutiny, Google agreed to y 130 million pounds in taxes, an amount Dwell on critics say amounts to about 3 per cent of its U.K. profits.

“The commission will analyse the UK deal with Google if the need arises,” said Pierre Moscovici, Europe’s most older tax policy official.

Common loopholes

“However, the commission is clear that all assemblies must y their fair share of taxes where they net their profits.”

Among the most commonly used tax loopholes to be not far from is the practice of setting up a subsidiary in a non-European tax haven, which is used to y dividends subsidize to the European rent com ny that are not subject to tax.

Com nies also force no longer be able to shift profitable intellectual property that has been mostly advance in Europe to a low-tax jurisdiction to avoid ying tax, a common practice by tech and internet institutions.

The EU also is proposing a catch-all rule empowering governments to close down new quibbles devised by creative accountants.

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