On June 18, 2013, leaders of the Group of 8, including President Obama, met in Northern Ireland and discussed issues including measures to reduce tax evasion by multinational companies. By working together, the G8 leaders believe they can shut down tax havens and other vehicles that allow multinational companies to avoid paying taxes. To “fight the scourge of tax evasion,” the leaders want countries to change rules that allow companies to easily shift profits, establish an automatic exchange of information between taxing authorities, and allow countries to obtain additional information about shell-corporation activities that help shelter income.
While the specifics and implementation of the measures have not seen the light of day, they highlight that countries are taking this issue seriously and intend to move forward with tax reform.
We will keep readers of this blog up to date on efforts by the United States and other countries to reform existing taxing regimes.
The views expressed in this article are those of the authors and do not necessarily reflect the position or policy of Berkeley Research Group, LLC.
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