Tax avoidance goes global
Today, the leaders of G20's nations will be meeting in St Petersburg to discuss economic issues on a global scale. What we are expecting to hear, is that an agreement has been made across the nations to fight tax avoidance and evasion by multinational companies.
Recently, you may have seen blogs by the WSM team about different companies getting caught for having various tax avoidance schemes in place and dodging paying billions of pounds. The gist of these articles, is that large companies are choosing to use highly complex schemes to avoid paying corporation tax which is having a negative effect on the economy and the countries in which they are based. In some African countries, for example, 2% of the national income is lost due to the businesses dodging taxes. This is a huge amount of money which is having a huge effect on countries that really need the financial support, and most of all, it is what is owed.
Either way, it will be interesting to hear the outcome of the meeting and see how the multinationals and their tax planning schemes will be affected in the future.