OECD companies to curb tax evasion – Volkskrant

OECD companies to curb tax evasion – Volkskrant

By: Peter de Waard – 17/09/14, 05:23

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Companies like Apple, Google and Starbucks apply various tricks to avoid paying in the countries where they operate. Less tax The OECD wants them to an end. It may be a long time before it happens.

It should be clarified that even subsidiaries in countries create multinationals to achieve. Impossible tax An end must be put to treaty shopping, the improper use of tax treaties that countries close to each other. And also there should be an international ban on transfer pricing.

Here bring daughters who are located in countries with low income tax extremely high prices for things like patents, copyrights, trademark rights, to subsidiaries of the same company in countries with high income taxes. This is stated in a report that are submitted to the so-called G20. Along with countries like Russia, China and Brazil, the 34 member states of the Organization for Economic Cooperation and Development (OECD) The aim is to eliminate tax avoidance by multinationals to an end.

Complex routes
In recent years, companies like Apple, Google, Starbucks and Amazon become discredited because they know how to express to almost zero. Their tax bill through complex routes “That is a serious risk to the tax revenues,” the OECD.

last year decided the leaders of the G20 to establish who had come to counter tax avoidance ideas a special project of the OECD: the so-called SAVE project (Base Erosion & amp; Profit Shifting). The result should be that “taxation at the place where economic activities take place and value is created.”

The way companies tax return and provide information on eg their sales and profits and number of employees, according to the OECD can be drawn equally. Also could include stricter rules on countries where companies possessions as patents and copyrights lodging.

Netherlands waits
The OECD notes that trading over the internet has changed the playing field but calls it pointless for this individual to adopt rules. “Because the digital economy is doing the actual economy will be difficult, if not will be impossible, which to delimit the rest of the economy. Tax reasons’

Wiebe’s Minister of Finance said Tuesday in a response that the Netherlands supports the project and that great progress has been made. “International companies and other investors mainly use differences between national tax rules. Impose unilateral measures that are not on. Netherlands therefore focusses on international cooperation. ”

Netherlands will not do anything until the end of next year, the OECD, a full package of measures that the G20 approves presents itself. Elaboration of the rules into national law of any country in the world, however, will still take a long time.

Professor Sol Picciotto of Tax Justice Network believes that “it may take five to ten years.” Tax Justice Network is fighting for fairer taxation in the world. This weekend will be the finance ministers of the G20 bow during a meeting in the Australian city of Cairns on the proposals.