G8 leaders strike deal to fight tax evasion 'scourge'

ENNISKILLEN, UK: Leaders of the G8 major economies struck a deal yesterday to crack down on the "scourge" of illegal tax evasion and fight corporate tax avoidance that rob government coffers of billions.

As countries across the world labour to cut deficits with deeply unpopular austerity measures, the G8 leaders signalled a radical change towards automatically exchanging tax data in a bid to ferret out cheats.

Gathered in Northern Ireland for a two-day summit, they also targeted legal tax avoidance by multinationals such as Google, Amazon and Starbucks that costs taxpayers billions in lost revenues.

Campaigners welcomed the deal, but said it did not go far enough.

"Tax authorities across the world should automatically share information to fight the scourge of tax evasion," the G8 leaders said.

They pledged to make this the new global standard by developing a "multilateral model which will make it easier for governments to find and punish tax evaders."

Much of the concern over tax avoidance has focused on big companies that operate legally within the tax system to minimise what they pay.

"Countries should change rules that let companies shift their profits across borders to avoid taxes, and multinationals should report to tax authorities what tax they pay where," said the statement.

On Saturday, Prime Minister David Cameron strengthened his hand by securing a commitment from Britain's overseas territories, including financial centres such as Bermuda and Jersey, to promote transparency and the exchange of information between tax jurisdictions. AFP


Read more: G8 leaders strike deal to fight tax evasion 'scourge' [You must be registered and logged in to see this link.]