OECD calls for clampdown on tax avoidance
The Organisation for Economic Co-operation and Development (OECD) has called for a clampdown on corporate tax avoidance in a new study.
The OECD said an international clampdown on corporate tax avoidance is needed to stop governments’ tax bases being eroded and a rise in tax bills for citizens and small businesses.
Complex tax avoidance schemes mean that some multinationals pay as little as 5% in corporate taxes when smaller businesses are paying up to 30%, an OECD study found.
Some small jurisdictions act as conduits, receiving large amounts of foreign investment compared to large industrialised countries, the study continued.
Companies' tax schemes, though technically legal, “erode the tax base of many countries and threaten the stability of the international tax system,” said OECD Secretary-General Angel Gurría.