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06 October, 2015

OECD nations approve tax evasion crackdown on multinational corporations

The project targets large multinational corporations such as Amazon, Apple and Google

The Organization for Economic Cooperation and Development (OECD) approved a new set of measures Monday which seek to stop tax evasion by multinational corporations.

The new measures could cost companies such as Amazon, Apple or Google, between US$100-240 million in taxes.

Meeting in Lima, Peru, the OECD – which comprises of 62 countries – discussed the impact of tax evasion and reviewed the plan entitled Base erosion and profit shifting project (BEPS), which aims to tackle the transfer of profits to tax havens.

The project also addresses issues such as the value added tax in online transactions and implements domestic law changes between countries to impede tax deduction and exemptions from allowing hybrid tax evasion mechanisms.

We are not so naïve as to think that tax evasion is over. But this plan will revert the trend,” explained Pascal Saint-Amans of the OECD's Centre for Tax Policy and Administration.

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