14/06/21

INTERNATIONAL TAX: G7 'must do more' to tackle misuse of shell companies.

As published on internationalinvestment.net, Monday 14 June, 2021.

A commitment that G7 members "must do more" to make sure that proceeds of corruption do not end up in untraceable accounts, obscured by shell companies or in real estate, was one of the outline commitments made at the high profile summit in the UK's Cornish resort St Ives last weekend.

The US White House stated: "Together with our G7 partners, the United States is resolved to taking meaningful actions to effectively combat corruption, such as tackling the misuse of shell companies, limiting the ability of bad actors to launder dirty money in real estate purchases, improving corruption-related information sharing, and reforming foreign assistance to focus on anticorruption as a cross-cutting priority.

"We welcome the G7 commitment to take collective action in combatting corruption."

The Carbis Bay G7 Summit Communique on 13 June also called for a tax system that is fair across the world:

"We endorse the historic commitment made by the G7 on 5 June. We will now continue the discussion to reach consensus on a global agreement on an equitable solution on the allocation of taxing rights and an ambitious global minimum tax of at least 15 per cent on a country-by-country basis, through the G20/OECD inclusive framework and look forward to reaching an agreement at the July meeting of G20 Finance Ministers and Central Bank Governors.

"With this, we have taken a significant step towards creating a fairer tax system fit for the 21st century, and reversing a 40-year race to the bottom. Our collaboration will create a stronger level playing field, and it will help raise more tax revenue to support investment and it will crack down on tax avoidance."