G20 Finance Ministers discuss tax reforms

G20 Finance Ministers are expected to give the green light to a new round of negotiations on international tax reforms at a meeting in Fukuoka, Japan on 8 - 9 June, 2019, in line with OECD recommendations issued in May. 

For the first time countries will debate proposals for fundamental reforms such as where a companies’ profits are taxed and whether to set a global minimum effective corporate tax rate.

Jim Clarken, Oxfam Ireland Chief Executive, said:

“This new round of global tax negotiations offers a unique chance to put a stop to corporate tax dodging and damaging tax competition. If they get it right this could mark the beginning of a new fairer tax era where poor countries are able to claim their fair share of corporate tax revenues – and release the funds they need to tackle poverty and inequality. Governments must not waste this opportunity.

“The UN has said that developing countries lose around $100 billion each year as a result of global corporate tax avoidance. This shortfall leaves developing countries without the revenue to provide the vital healthcare, education and infrastructure needed to tackle poverty and inequality.  Women and girls are most effected by the lack of these services, as recently highlighted by a European Parliament report on taxation policies and gender equality.

“If we look at Ireland, our corporate tax rate has attracted international investment that generates much-needed jobs and prosperity. However, the parallel system of tax loopholes needs to be reformed because of the knock-on effect that it has on some of the poorest communities in the world.

“A global consensus has seen efforts to reform the global tax system take place at the OECD, where Ireland also participates. G20 Finance Ministers need to take the opportunity this weekend to get behind reforms that will usher in a new corporate tax era.”

ENDS 

CONTACT: Nyle Lennon, nyle.lennon@oxfam.org,   083 197 5107.

Notes to editors

An Oxfam briefing note - 'Tax Revolution?' -  which provides more details on the negotiations and what is at stake is available on request.