Joint G20 / OECD press conference
Remarks by Angel Gurría,
Lima, 9 October 2015
(As prepared for delivery)
Yesterday, G20 finance ministers endorsed the set of 15 actions to address base erosion and profit shifting. This is an historical moment.
The international tax system needed a serious overhaul to stop the “bleeding” and catch up with the realities of a globalised economy. We estimate that the unintended gaps and mismatches in the international tax architecture are costing almost a quarter of a trillion dollars annually in lost revenue for governments, in advanced, emerging and low income economies, across the globe. We need to address BEPS for our economies and the sustainability of our public finances; we equally owe it to our citizens who are grappling with economic and social hardship. The comprehensive BEPS package, which has been delivered on time, will impact the behaviour of tax planners who now need to see the writing on the wall.
We are now moving to the next phase which should consist of a holy trinity: “implementation, implementation, and implementation”! As per G20 Finance Ministers’ mandate, I will propose, at our next meeting, an inclusive framework for the monitoring of the implementation of the agreed BEPS actions. All interested jurisdictions, including developing countries, will be invited to participate on an equal footing.
I would like to thank all G20 countries and the successive presidencies of the G20, including Turkey, for their strong support and tremendous efforts over the past two years to make this happen. There have been hard negotiations to get a meaningful agreement. The presence of so many ministers this morning shows how political support and commitment has helped us to deliver.
The BEPS project is clearly the G20 at its best! Let’s continue working together, therefore - the G20, the OECD and other stakeholders – to make it happen.