G20 Finance Ministers to Focus on Multi National Tax

The OECD will deliver a new report this morning on the subject of multi national taxation to the Moscow based G20 Finance Ministers. The report builds on their work on base erosion and profit shifting.

The trio of Google, Amazon, and Starbucks can barely be mentioned these days without reference to corporation tax.

Concerns continue, in Europe at least, that they are not paying enough corporation tax due to the shifting of profits principally to Dublin, Luxembourg and the Netherlands, the 'Treaty' jurisdictions.Russia G20

 

Unfortunately most politicians fail to grasp that centres such as Jersey are not involved in this kind of activity, because we are not a 'Treaty' jurisdiction. We don't have the treaties needed to avoid withholding taxes on royalty payments and dividends as these payments flow across borders.

The current political focus may lead to catch all solutions that could potentially impact on Jersey so we are watching developments carefully.

The OECD report will be out a little later this morning and I will post the report and initial analysis later today.

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