G20 and Global Tax?
Multinational companies buy, sell and ship money all round the world to either avoid paying tax altogether or to pay the very least they can.
The problem is, this is not illegal, loop holes exist and some countries deliberately keep corporate tax as low as possible to attract businesses and jobs.
If a global, unified tax system was in place it could (if done properly) eliminate the constant ‘threat’ of businesses and jobs packing up and moving to another country.
The money raised would be a much needed boost to help combat unemployment and improve heath and education.
The G20 Finance Ministers and Central Bank Governors’ Meeting will take place in Moscow, Russia from 15th – 16th February 2013.
Amongst other things the ‘global economy outlook’ will be discussed with the UK, France and Germany expected to push for global tax rules to help clampdown on corporate tax avoidance.
A full list of the G20 Finance Ministers and Central Bank Governors’ Meeting program can be found here.
There are almost countless examples of corporate tax avoidance, here are a couple…
Starbucks has paid £8.6m in corporation tax in its 14 years of trading in the UK, and nothing in the last three years.
Facebook paid no corporate income tax in the US last year, and instead reclaimed $451m in taxes from the Internal Revenue Service (IRS), despite recording profits of over $1bn.
Amazon generated £7.5bn from sales in the UK in the last three years, did so without attracting any corporation tax on the profits from those sales.