Moscow hosted the G20 Finance Ministers and Central Bank Governors’ Meeting on July 19-20. The genda included issues such as the G20 Framework agreement for strong, sustainable and balanced growth; IFA’s reform; the financial regulation reforms and financial inclusion, financing for investment, counteracting tax base erosion and profit shifting, energy sustainability, commodity markets transparency and climate finance.

On July 19, on the eve of the G20 Meeting, Angel Gurria, the Secretary-General of the Organization for Economic Cooperation and Development (OECD), presented a report on its Action Plan on Base Erosion and Profit Shifting (BEPS). This document contains proposals for the development of mechanisms and regulations to counteract unfair tax competition, including developing new set of standards to prevent double non-taxation.

*”These rules can be implemented successfully if the countries use them all together, if it will implemented only by a single country or even by only a group of countries – there will be no needed effect,”* Russian Finance Minister Anton Siluanov said at the news conference following the presentation of the report. “*We agreed on the need to implement (the Action Plan) it in a global format not only by the G20’s members but also other countries.”*

Mr. Siluanov also noted that it is planned to develop recommendations on the basis of the report regarding the rules of deduction of various expenses, a revised approach to transfer pricing, tighter tax rules for the profits of foreign-controlled companies, as well as measures to counteract tax evasion in the rapid developing new forms of business, such as the digital economy.
The outcome of the G20 Finance Ministers and Central Bank Governors’ Meeting is reflected in the Communiqué (see below).

##EU Welcomes Outcome##

EU Commission Semeta welcomed the G20 Finance Ministers’ commitments on new measures to fight tax evasion and avoidance. He said this confirms a paradigm shift in international taxation – one that will make it fairer, more effective and better equipped for the 21st century economy.

He also said that the OECD’s Action Plan to tackle Base Erosion and Profit Shifting is the right approach to curbing corporate tax avoidance worldwide. *“The BEPS Action Plan complements the measures put forward by the Commission to tackle aggressive tax planning in the EU, which European leaders endorsed in May. It fully supports our common objectives to ensure that everyone pays their fair share of tax – whether large multinational or small corner shop – and that taxation reflects where economic activity takes place. It also fills important gaps that can only be effectively dealt with at international level.”*

The Commissioner said the endorsement of automatic exchange of information as the global standard is extremely welcome. *“Without a doubt, automatic information exchange is the best way of ensuring that every country can collect the taxes that it is legitimately due. For some time now, the EU has been the fore-runner in this field. The international consensus to follow our lead, with more openness and greater transparency, gives credence to our approach.”*