UK Treasury's Financial Secretary Stephen Timms has urged OECD member countries to adopt global automatic exchange of information about tax and beneficial ownership.
"In an environment where tax revenues have been hard hit by recession, governments are taking a much tougher line on tax evasion," Timms told the OECD Tax & Development Conference in Paris today (28 January).
He also offered support to the currently popular idea that multinationals should adopt country-by-country financial reporting. The OECD should draw up guidelines for companies that adopt the practice, and also for transfer pricing, he said.
"There should be transparency about where companies earn their profits and where they pay their tax," Timms said. "For people and companies to be part of the global economy, they have to be willing to provide tax information."
The UK is keen to draw developing countries into the new framework of international tax information exchange agreements that has evolved in the last two years. Timms claimed this would be in developing countries' interests: not only do they lose at least $50 billion each year in corporate profit sharing and evasion by individuals, but they also need to show co-operation with developed countries in order to receive financial aid.
Timms also announced that the UK is planning to sign at least one multilateral tax information exchange agreement by the end of this year.
"In an environment where tax revenues have been hard hit by recession, governments are taking a much tougher line on tax evasion," Timms told the OECD Tax & Development Conference in Paris today (28 January).
He also offered support to the currently popular idea that multinationals should adopt country-by-country financial reporting. The OECD should draw up guidelines for companies that adopt the practice, and also for transfer pricing, he said.
"There should be transparency about where companies earn their profits and where they pay their tax," Timms said. "For people and companies to be part of the global economy, they have to be willing to provide tax information."
The UK is keen to draw developing countries into the new framework of international tax information exchange agreements that has evolved in the last two years. Timms claimed this would be in developing countries' interests: not only do they lose at least $50 billion each year in corporate profit sharing and evasion by individuals, but they also need to show co-operation with developed countries in order to receive financial aid.
Timms also announced that the UK is planning to sign at least one multilateral tax information exchange agreement by the end of this year.
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