This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
 

G20 Committed To 'Global Response' To BEPS

Tuesday, February 25, 2014

The Group of Twenty nations (G20) has reiterated its collective commitment to a global response to Base Erosion and Profit Shifting (BEPS), which it said should be "based on sound tax policy principles."

G20 finance ministers and central bank governors met in Sydney last week, where they agreed that profits should be taxed where economic activities deriving the profits are performed, and where value is created. They voiced their continued support for the BEPS Action Plan drawn up by the Organization for Economic Cooperation and Development (OECD), and said they intend to "start to deliver effective, practical and sustainable measures to counter BEPS across all industries" in time for a leaders' summit in November.

According to a communique published following their meetings, the ministers endorsed proposals for the automatic exchange of tax information on a reciprocal basis, and committed to develop an implementation plan by September. They expect to begin automatic exchange among G20 members by the end of 2015.

The communique urges jurisdictions that have so far failed to comply with existing standards on information exchange to do so at the earliest opportunity, and to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. It encourages the Global Forum on Transparency and Exchange of Information for Tax Purposes to continue to monitor the progress made on implementation, and to continue to update ministers on progress. The G20's Anti-Corruption Working Group meanwhile has been instructed to provide an update by April on the measures that can be taken to meet Financial Action Task Force (FATF) standards on beneficial ownership and legal arrangements, such as trusts.

Speaking at the end of the summit, Australian Treasurer Joe Hockey said that ministers had "made solid progress in ensuring companies pay their fair share of tax." He explained that the communique reflects the shared goals of Finance Ministers and Central Bank Governors, who together represent countries which contribute to 75 percent of global trade flows and 85 percent of the economic activity.

Algirdas Šemeta, the European Union's (EU) Tax Commissioner, welcomed the meeting's outcomes as a "boost for transparency and fairness in global taxation." He said that the EU has been the international flag-bearer on automatic exchange, providing "significant, practical input to the table in developing this new global standard."

Looking to the future, Šemeta said that the EU must "continue to lead by example in tax good governance," and encouraged the EU's "neighbours and international partners, including major financial centres, to do the same."

The UK has also trumpeted its role in tackling avoidance and evasion. Chancellor George Osborne said: "Last year, the Prime Minister put tax at the heart of the UK's G8 agenda, leading to groundbreaking consensus on the action needed to bring greater transparency and fairness to the global tax system. The G20 took up the baton, and at this meeting we agreed the next steps in the international fight against tax avoidance and evasion."

"The UK government is on the side of the hardworking majority of people and companies who pay the tax they owe. By taking global action to reform the system alongside a tough approach to enforcing the law at home, we will close the net on those who think they do not have to play by the rules. This is a victory for Britain's international agenda and the fight against wrongdoing."

Finance Ministers are scheduled to meet again in April.

Mailing List

Click here to manage your mailing list preferences, or view our privacy statement.


The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




Latest News

Canadian Budget Focuses On 'Tax Fairness'
23/3/2017
The tax measures contained Canadian Finance Minister Bill Morneau's second Budget are focused on closing loopholes, cracking down on tax evasion, and improving tax reliefs for the "middle class."

Jersey Regulator Issues AML/CTF Funds Guidance
16/3/2017
Jersey's financial services regulator, the Jersey Financial Services Commission, has issued new anti-money laundering and countering the financing of terrorism guidance for Funds and Fund Operators.

More Tax Hikes For UK Taxpayers In 2017 Budget
9/3/2017
The UK Budget, released on March 9, 2017, featured tax measures to, among other things, hike taxes on self-employed workers, further close avenues for legal avoidance, and defer mandatory digital tax reporting until April 2019.

ACOSS Submits Recommendations For Australian Budget
2/3/2017
The Australian Council of Social Services has urged that the Government abolish ineffective tax concessions, introduce a sugary drinks tax, and scrap its company tax proposals.

MEPs Call For Wider Access To Beneficial Ownership Data
1/3/2017
EU citizens would be able to view information in registers of beneficial ownership without having to demonstrate a "legitimate interest," under proposed amendments the Anti-Money Laundering Directive.

New Zealand Tax Changes Enter Into Force
28/2/2017
A Bill including provisions to simplify New Zealand's tax processes, reduce compliance costs for smaller businesses, and tighten foreign trust disclosure rules received Royal Assent on February 21.

Guernsey Introduces Client Asset Handling Rules
22/2/2017
Guernsey's financial services regulator, the Guernsey Financial Services Commission, said it intends to introduce rules governing the holding and administration of client assets in 2017.

Australian Accountants Urge Tax Burden Shift
14/2/2017
Australia desperately needs large scale tax reform and should aim to rebalance its tax mix, the Institute of Public Accountants has argued.

IRS Issues Final Regulations On REIT Spin-Offs
24/1/2017
On January 18, the US Internal Revenue Service issued its final regulations regarding the measures included in the Protecting Americans from Tax Hikes Act to restrict the tax-free spin-offs involving publicly traded real estate investment trusts (REITs).

Bermuda, EU To Collaborate On Insurance, Pensions Oversight
17/1/2017
The European Insurance and Occupational Pensions Authority and the Bermuda Monetary Authority have newly signed a memorandum of understanding.

Hong Kong Consults On Beneficial Ownership Plans
13/1/2017
Hong Kong's Financial Services and the Treasury Bureau has launched public consultations on legislative proposals to increase the transparency of corporate beneficial ownership in the city, and to enhance its regulatory regime for combating money laundering and terrorist financing.

Hong Kong Reports On Incorporations In 2016
12/1/2017
There was an increase in local company incorporations in Hong Kong in 2016, although incorporations by foreign companies experienced a dip, according to the territory's Companies Registry.

Guernsey Regulator Outlines 2017 Funds Strategy
2/1/2017
Guernsey's financial services regulator, the Guernsey Financial Services Commission, has outlined its funds sector strategy for 2017.

Canada Waives Income, Activities Reporting For Labor Org's
21/12/2016
Canada's Revenue Minister has announced that certain reporting requirements on labor organizations and labor trusts will be waived.

South African Tax Bills Approved By Parliament
19/12/2016
South Africa's Ministry of Finance has published the 2016 Taxation Laws Amendment Bill, which has received parliamentary approval and gives effect to the tax changes announced in the Budget in February this year, together with legislation confirming the final details of. the Special Voluntary Disclosure Program.