OECD urges international tax clampdown on multinationals
PARIS (REUTERS) - A sweeping overhaul of international corporate tax rules is urgently needed to stop savvy, big companies escaping the payment of billions of euros to cash-strapped governments, the OECD said on Tuesday.
Governments face a growing outcry from voters to force big companies with extensive international business to pay more tax in the wake of mounting evidence that many use differences between different countries' rules to reduce their tax bill.
The Paris-based Organisation for Economic Cooperation and Development (OECD) said multinational companies were increasingly reporting profits in different countries from where their revenues were generated to avoid taxes.
The trend comes against the backdrop of falling taxes on businesses as OECD governments have trimmed their statutory corporate income tax rates to an average of 25.4 per cent in 2011 from 32.6 per cent in 2000.