Germany and UK: close corporate tax loopholes

Germany and UK: close corporate tax loopholes
Photo: DPA
Germany and Britain pressed the Group of 20 leading economies on Monday to tighten international standards for corporate tax regimes in order to close loopholes for big companies.

The finance ministers of both nations said tax standards had struggled to keep up with changes in global business practices, such as e-commerce, which enable some large firms to shift taxes on profits to other jurisdictions.

“Britain and Germany want competitive corporate tax systems that attract global companies to our countries, but also want global companies to pay those taxes,” said Germany’s Wolfgang Schäuble and Britain’s George Osborne said in a joint statement.

“That is best achieved through international action in the G20 and other relevant international fora to ensure strong standards,” they said at a meeting of G20 finance ministers and central bankers in Mexico City.

The two-day meeting, which ended on Monday, was focused on threats to the global economy including the debt crisis in Europe and a looming fiscal crunch in the United States.


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