The finance chiefs of the world’s leading economies have announced an ambitious plan to help governments get more taxes from multinational companies.
The plan was designed by the Organization for Economic Cooperation and Development and introduced at a meeting of the Group of 20 finance ministers in Moscow on Friday.
The Paris—based OECD says that “national tax laws have not kept pace with the globalization of corporations and the digital economy, leaving gaps that can be exploited by multinational corporations to artificially reduce their taxes.”
The new 15—point plan includes ways to close loopholes, for example that allow companies to stash profits from in offshore subsidiaries.
Low tax payments by major multinationals have sparked public anger in Europe recently, especially as governments are struggling with high debts and low growth.