The OECD measures to reduce tax evasion – Tribune.fr

The OECD measures to reduce tax evasion – Tribune.fr

Tax optimization is in the viewfinder of the Organisation for Economic Cooperation and Development (OECD). Which was released Tuesday to the G20 recommendations first salvo against these sophisticated strategies and usually legal for multinationals to pay as little tax as possible.

Application expected late 2015

The first seven elements of the action plan against “the erosion of the tax base and benefits transfer” are “change the rules of the game” , promised Pascal Saint-Amans, in charge, by presenting to the press. Eight other measures must be made next year. Some of them could be implemented by the end of 2015 hope OECD.

The recommendations, which covers a total of 44 countries will be presented to the finance ministers of the G20 group of leading economies in Cairns (Australia) on 20 and 21 September.

• Taxing profits where they are made

For the OECD one thing is clear: the benefits must be taxed where they are made, and no question of diverting tax treaties between countries to avoid the “double taxation” in order to create “double exemption” . Multinationals such as Google and Starbucks are often cited as examples of such practices

Read Tax Evasion. Brussels investigating Apple and Starbucks

In fact, OECD observations are biased to the digital economy part. Working almost exclusively with intangible assets (trademarks, patents, algorithms), companies in the sector can “browse” their business from one country to another much more easily than by automaker example, with its machines and warehouses.

• A new model of tax returns

The 44 countries gathered under the leadership OECD also adopted a model tax declaration “country by country” for business. This document will show the revenue, profit, staff and the tax paid in each state.

But this statement will be transmitted only to tax authorities and not made public as desired by many NGOs, for whom greater transparency increases the pressure on businesses.

“This omission may limit the effectiveness of the action plan of the OECD” , said Friederike Röder, director of ONE France, the NGO singer Bono, who believes that fraud and corruption would cost up to € 49 billion a year to developing countries.

• Restrict transfers between subsidiaries

The OECD also wants “to improve the documentation of transfer pricing” to avoid fixed a wacky business rates to move money from one subsidiary to another (fees, billing raw materials etc.). The goal is to direct profits to mailboxes located in tax havens.

The OECD estimates that this technique allows American companies to store 2,000 billion dollars out of reach of the tax authorities, including Bermuda.

For example, the phone group Vodafone has a central equipment purchases in Luxembourg, where it is not taxed on its profits. Last year, this subsidiary, which has 200 employees barely generated more than 400 million profit.

• Reduce taxation on the map

Another advance, according to the OECD: States concerned decided to combat the practice of “treaty shopping”. Behind the term jargon lies a practice whereby a company consistently seeks the most favorable regime for transit funds or establish its headquarters.

Read How American giants avoid the tax legally

In fact, many sites in Europe are from the Netherlands. An example followed by the American giant Netflix video that wish to carry next year’s European site. The States concerned have found it possible to implement certain recommendations of the OECD via a multilateral agreement.