by Julie Martin, MNE Tax
G20 leaders, in a communique issued after their summit in Buenos Aires, Argentina, reaffirmed their commitment to improving the international tax system.
“We will continue our work for a globally fair, sustainable, and modern international tax system based, in particular on tax treaties and transfer pricing rules, and welcome international cooperation to advance pro-growth tax policies,” the leaders said following their meeting, which concluded December 1.
The leaders also declared that worldwide implementation of the OECD/G20 base erosion and profit shifting (BEPS) package “remains essential.”
Further, they promised to work toward reaching a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system.
In a tweet, the Director of the OECD Centre for Tax Policy and Administration, Pascal Saint-Amans, reported that during the leaders’ discussions on digital taxation, French President Emmanuel Macron argued in favor of “BEPS 2.0,” namely, a minimum corporate tax, while US Treasury Secretary Steven Mnuchin said the US favored a broad approach to dealing with digital economy taxation issues.
Good session on #tax at #G20 summit with strong support for #BEPS and #AEOI. Need to deal with digital challenges. Secretary Mnuchin in favor of a broad approach. President Macron mentions need for BEPS2.0. Exciting times! @OECDtax
— Pascal Saint-Amans (@PSaintAmans) November 30, 2018
The OECD Secretary-General prepared report for the leaders for their meeting which discusses the status of OECD-led efforts to fight tax evasion and avoidance, improve tax certainty, and to assist developing countries with international tax matters.
The activities and achievements of the Global Forum on Transparency and Exchange of Information for Tax Purposes are also outlined in this report.
The leaders of the BRICS countries of Brazil, Russia, India, China, and South Africa also held an informal meeting in the sidelines of the G20; however, a communique issued by these countries following their meeting made no mention of agreements relating to international tax.