OECD unveils tax plans

Moves to tackle corporate tax avoidance on a global scale have been unveiled by the OECD. The action plan is aimed at multinational companies that shrink their tax bills by shifting their profits from one country to another.The OECD says 44 nations making up 90% of the world economy favour its plan. Announcing the proposals, the OECD’s head of tax, Pascal Saint-Amans, said that they would “change the rules of the game” by making sure companies paid taxes in the country where profits were generated. At present, firms can exploit agreements intended to avoid double taxation of profits by using them to obtain double tax deductions instead. They also use internal billing procedures to ensure that profits are registered in countries where corporate tax levels are lower. Under the OECD plan, a country-by-country model would require firms to declare their revenue, profit, staffing and tax paid in each jurisdiction.