Remarks by Angel Gurría
Buenos Aires, Argentina - 30 November 2018
(As prepared for delivery)
President Macri, Excellencies,
Over the last ten years, the G20 has worked jointly to overcome the legacies of the global economic crisis. Levelling the playing field and addressing the shortcomings in the international economic system have been crucial in our efforts to foster strong, sustainable and inclusive growth.
Central to this is our joint work on tax, which has reinforced national sovereignties, our ability to collect taxes, to avoid tax evasion and erosion, and has allowed for stronger tax cooperation. In 2018, many of these actions have become reality, like the launch of automatic exchange of tax information, which has already produced 93 billion euros in unplanned additional revenues for participating countries, or the implementation of BEPS project.
Hovewer, that there are remaining challenges, in particular coming from the digitalisation of the economy. In spite of the divergences of views, reflected in my March interim report, we are now making good progress towards a global common solution.
Based on its tax reform, the United States has proposed a broad approach to address these challenges and the deficiencies of international tax. The UK proposal, which integrates some elements of the US approach, takes into account the value of user contribution in highly digitalized business models. France and Germany have proposed to explore the feasibility of a global anti-base erosion mechanism. In a series of meetings scheduled in the coming weeks and months, these approaches will be discussed by the 124 members of the OECD Inclusive framework, including all G20 countries.
Now, the G20 needs to show unity and commitment, seize the momentum and maintain the political focus to reach a consensus-based solution, which is within reach. My hope is that, at the next Summit in Osaka, we will be able to show good progress on the “what” and the “how” of a long-term solution, which we could then deliver in detailed, final form in 2020, as originally scheduled. Count on the OECD to continue supporting the G20 to design, develop and deliver better tax policies for better lives.
OECD work on Trade