G20 nations back plan to fight 'scourge of tax evasion'

Plans to tackle international tax avoidance and evasion have been formally backed by finance ministers from the G20 group of leading nations.

The group also backed plans by the Organisation for Economic Cooperation and Development to stop firms moving their profits across borders to avoid taxes.

According to the BBC, the OECD said some firms were abusing current rules to avoid tax.

UK Chancellor George Osborne said the announcement was an important step towards a global tax system that is fair and fit for purpose for the modern economy.

The tax evasion plans were made during a two-day G20 meeting in Moscow.

Last month, the G8 group of leading economies agreed a deal to fight the scourge of tax evasion.

Nations, including the UK, France, Germany, the USA and Australia are taking part in a pilot information exchange scheme.