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Shanghai G20: International Tax

 

G20 Finance Ministers’ and Central Bank Governors’ Meeting

Session VI – International Tax

Remarks by Angel Gurría,

Secretary-General, OECD

Shanghai, 27 February 2016

(As prepared for delivery)

 

 

Dear Ministers and Central Bank Governors,

 

Thanks to the G20's political leadership, a wide range of countries representing different levels of development have worked together to assure the integrity of our tax systems, fighting tax evasion and shutting down the loopholes that facilitate tax avoidance.

 

As I said in Antalya, the three ”I”s in taxation in 2016 are about implementation, implementation and implementation. We are delivering today the new inclusive framework to support global BEPS implementation. Monitoring BEPS and fixing the standards as needed, will now be open to all interested countries and jurisdictions invited to join us - the OECD and G20 countries - on an equal footing in the Committee on Fiscal Affairs.

 

This will now be the largest, most inclusive forum where international taxation will be discussed and decided. With this new Forum, developing countries will be able to promote their own views and all participants will benefit from levelling the playing field. The Forum will now be established swiftly, with its first meeting to be held in Kyoto in June. I will therefore be able to report to you in Cheng Du in July, and to the Leaders in Hangzhou in September, on its first meeting and the state of BEPS implementation.

 

Many countries have already started enacting BEPS recommendations from anti-hybrid mismatch legislation to putting in place country-by-country reporting, which should cover 2016 accounts to be exchanged in 2017.

 

The multilateral instrument to address tax treaty-related BEPS measures is progressing well, with 95 countries involved, covering more than 2 000 bilateral treaties. We are still on track to deliver this instrument by year-end.

 

Finally on BEPS, I would like to comment the good progress in the EU with the proposal of a BEPS directive which will ensure a consistent implementation of the BEPS package across the EU. Tax administrations will also have a role to play in BEPS implementation, and I am glad that the Forum on Tax Administration will gather tax commissioners of all OECD and G20 countries in Beijing in May, hosted by Commissioner Wang Jun.

 

So far 96 jurisdictions have committed to undertaking the first exchanges of financial account information in 2017 and 2018. It is critical that all financial centres, which have not yet done so, join the Commitment to implement the AEOI standard if we are to secure a level playing field. To support implementation, OECD is working with tax administrations to design a common transmission system that would provide a secure exchange of this data, in the most cost effective way. As part of meeting their commitment, 95 jurisdictions have now joined the Multilateral Convention on Mutual Administrative Assistance, with Senegal and Kenya being the most recent signatories.

 

I am also glad to report that we, the IOs, have agreed to establish a platform to better work together on all tax matters. I would like to thank my fellow colleagues from the IMF, the WBG and the UN for having agreed this platform which will ensure we are all lined up to deliver more and better to support the G20 tax agenda and domestic resource mobilisation.

 

In closing, I would like to stress that we are very supportive of China’s proposal to host a G20 Tax Policy Symposium in July to explore the inter-linkages between tax policy and the broader G20 objectives of inclusivity and sustainable growth. Building on our existing work in this area, the OECD stands ready to support the G20 in this new area of work on tax policy.

 

I count on your persistent and energetic support to ensure that the OECD’s work on tax issues under your leadership will continue to deliver tangible results enabling to build a more resilient, stable and sustainable environment for global growth.

 

Thank you.