Through the OECD/G20 Base Erosion and Profit Shifting Project (BEPS), and the OECD's work to establish a single global standard for the automatic exchange of information, the OECD and the global community are reforming an international tax system which had not kept pace with changing times, and in doing so, restoring integrity, coherence and effectiveness to it.
International tax evasion and avoidance has been a headline issue for more than 5 years. In a context of economic and social hardship, these behaviours understandably raised questions about the fairness and integrity of our tax systems. As a result, since the crisis, the OECD has been partnering with the G20, bringing together technical expertise and political leadership, to address those issues.
Today, your governments – and many of our Partners – have taken another major step forward by adopting the Declaration on Automatic Exchange of Information in Tax Matters. More than 60 jurisdictions are now committed to implementing what the G20 recognises as the single, global standard. And more are expected to join soon!
We need to fight distortions to competition that can arise from tax avoidance, just like we do from other forms of government intervention, such as regulation, said OECD Secretary-General.
Chile is the eighth country in the region to sign this Convention, which shows that we have made progress, but there is still much ground to cover. We hope that this signing will attract the attention of other Latin American countries that want to be included in this important multilateral co-operation instrument.
OECD Secretary-General, Angel Gurría, congratulated Japanese Prime Minister Abe on his announcement today that Japan will raise its consumption tax as legislated from the current 5% to 8% next April.
Strong competition is an optimizer for our economies. First of all, it is the best catalyst to increase our productivity. This is because a strong competition framework generates the right incentives to attract the most efficient firms into our markets.
Vast amounts of money are kept off-shore and go untaxed. The more we do to combat tax fraud and evasion, the more resources we will have to finance growth-enhancing public investment, restore the health of public finances, and put the euro area economy back on a sustained and long-term recovery, said OECD Secretary-General.
Building an international tax system that is transparent, efficient and fair, will serve our economies, our governments and our citizens, said OECD Secretary-General at the G20 summit in St. Petersburg.
Today’s signing is both timely and important as the G20 has endorsed automatic exchange of information as the new global standard. This Convention provides the ideal instrument to swiftly implement automatic exchange, and to do so with a wide range of partners. This also represents another significant step in the strengthening of collaboration between China and the OECD, said Angel Gurría.