Multi nationals face tax crackdow

 Osborne backs tax crackdown

George Osborne has hailed an “historic” agreement to change the rules on taxing profits and prevent multinational companies using their size and international presence to dodge taxes. The plans to crack down on corporate tax avoidance were devised by more than 60 governments in the first overhaul of the rules for taxing profits for nearly a century. Under the ‘base erosion and profit shifting’ rules, companies such as Starbucks, Amazon and Google will find it harder to concentrate their profits in low-tax countries and tax havens. "People are fed up when they see large international businesses avoiding paying tax in any jurisdiction. So this isn"t about whether you have low taxes or high taxes, this is about paying your taxes,” said Mr Osborne. According to the OECD, the shift promises to raise up to $250bn a year in extra tax revenues. Angel Gurría, head of the OECD, said it was time “to recover the trust of our citizens.”

Source:   Financial Times (10/10/2015)