G20 leaders during their summit in Hangzhou, China, held September 4–5 endorsed a proposal setting out objective criteria to be used to identify whether countries are sufficiently tax transparent or not.
The proposal, prepared by OECD and G20 countries and endorsed by G20 finance ministers last July, labels a country as “non-cooperative” for tax purposes based on whether the country meets specified criteria for exchanging tax information with other countries.
In a communique following their meeting, the G20 leaders asked the OECD to prepare by the July 2017 G20 leaders’ summit a list of countries that do not meet new criteria. “Defensive measures will be considered against listed jurisdictions,” the leaders warn.
The G20 leaders also agreed that international tax policies should promote growth and tax certainty and they noted that China has established a international tax policy design and research center that will contribute in this area.
The leaders reaffirmed the importance advancing cooperation on the OECD/G20 base erosion and profits shifting (BEPS) plan, and welcomed the establishment of the G20/OECD inclusive framework on BEPS and its first meeting in Kyoto.
“We support a timely, consistent and widespread implementation of the BEPS package and call upon all relevant and interested countries and jurisdictions that have not yet committed to the BEPS package to do so and join the framework on an equal footing,” the leaders said.
The final BEPS plan was endorsed by the leaders at their last summit, held about 10 months ago.
Building up the tax capacity of developing countries is also a priority, the leaders said, acknowledging the establishment of the new Platform for Collaboration on Taxation by the IMF, OECD, UN and WBG.
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