Wednesday, June 3, 2015

International Panel Against Tax Dodging by Corporations

End Companies’ Tax-Haven Shell Games, Panel Says

Reporter - Wall St Journal
June 1, 2015
"An international panel of development experts is recommending sweeping changes to the way major corporations are taxed around the world, saying countries should stop permitting the kind of tax-dodging that companies engage in now through their overseas subsidiaries."

"The mounting concern is spurring a range of multilateral efforts to clamp down, largely through tightening of current rules. The highest-profile effort, being conducted by the Organization for Economic Cooperation and Development, already is developing a number of proposals to crack down on so-called profit-shifting and other dodges."

"The root of the problem, they say, is that multinational companies have been able to exploit the current legal system to find ways to stash profits in subsidiaries located in low-tax havens around the world. Often companies have made tax-haven subsidiaries the hubs of their overseas operations, using various corporate tax maneuvers to funnel profits into them from higher-tax countries."