TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

G20 leaders mull plan to get more tax revenue from multinational corporations

About The Tribune-Review
The Tribune-Review can be reached via e-mail or at 412-321-6460.
Contact Us | Video | Photo Reprints

By The Associated Press

Published: Saturday, July 20, 2013, 12:01 a.m.

PARIS — Stashing profits offshore may soon get tougher for companies, thanks to an ambitious plan released Friday by the finance chiefs of leading world economies aimed at forcing multinationals to pay more taxes.

Low tax payments by major global companies — including Google, Amazon, Facebook and Starbucks — have sparked public anger in Europe recently, as governments are struggling with high debts, low growth and austerity measures that are hitting ordinary taxpayers.

“National tax laws have not kept pace with the globalization of corporations and the digital economy, leaving gaps that can be exploited by multinational corporations to artificially reduce their taxes,” the Organization for Economic Cooperation and Development said in announcing the new tax plan. It was detailed at a meeting of the Group of 20 finance ministers in Moscow.

The Paris-based OECD says the 15-point plan includes ways to close loopholes and allow countries to tax profits held in offshore subsidiaries. If it is adopted, the measures would be implemented over the next two years and target such practices as deducting the same expense more than once in more than one country.

The plan also has a special focus on the online economy, where commerce flows across borders constantly and it's harder to tie revenue and profit to a single country.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Consol Energy transitions as leadership changes hands
  2. PPG sales, operating profit see double-digit increases
  3. Factory output extends solid gains in March
  4. Fed Beige Book survey: Growth picks up across most of U.S. but not in Pittsburgh region
  5. GlaxoSmithKline discloses  bribery inquiries
  6. Higher fuel costs help established airlines, hinder startups
  7. Gap outlines growth plans for China
  8. Yellen stresses need for Fed to be flexible
  9. Mt. Gox bankruptcy protection rejected
  10. Programs help to nudge unemployment among veterans downward
  11. Heinz offers Pittsburgh workers a buyout if they are unhappy
Subscribe today! Click here for our subscription offers.