G8 countries agree to tackle tax evasion

Leaders of the G8 nations meeting in Northern Ireland have signed up to a declaration designed to tackle tax evasion and promote free trade around the world. 

Governments agreed to give each other automatic access to information on their residents’ tax affairs.

They will also require shell companies – often used to exploit tax loopholes and invest money anonymously – to identify their effective owners.

The summit communique urged countries to “fight the scourge of tax evasion”.

Leaders agreed that multinationals should tell all tax authorities about what taxes they pay and where.

“Countries should change rules that let companies shift their profits across borders to avoid taxes,” the communique said.

It follows revelations about the ways in which several major firms – including Google, Apple, Starbucks and Amazon – have minimised their tax bills.

Illegal activities, including tax evasion and money laundering, will be tackled by the automated sharing of tax information.

Ahead of the summit, the Organisation for Economic Co-operation and Development (OECD), proposed to share tax information by building on an existing system set up by the US and five major European economies, but on a global scale.

“This international tax tool is going to be a real feature of ensuring that we get proper tax payment and proper tax justice in our world,” said Mr Cameron, who claimed that it meant “those who want to evade taxes have nowhere to hide”.

The OECD includes all of the G8 members except Russia.

Leaders from the Group of Eight major economic powers have issued a joint plan on Syria that calls for an end to the bloodshed and peace talks as soon as possible, but fails to mention whether Syrian President Bashar al-Assad should step down.

Tuesday’s G-8 declaration said participants in any peace talks must agree to expel al-Qaida-linked fighters from Syria. It also committed a further $1.5 billion in aid for Syrian refugees. It condemned human rights abuses committed by government forces and rebels alike.

The summit meeting