G20 'determined' to halt cooperate tax avoidance

Moscow, Feb 16 (AFP) The G20 group of the world's top economies expressed determination today to crack down on companies who duck their full taxation responsibilities with elaborate schemes. The call came after the finance ministers of Britain, France and Germany said it was time for coordinated action to halt the practice of shifting profits from a firm's home country to pay less tax under another jurisdiction. Cash-strapped governments are seeking to use every means to inject new funds into their budgets and have run out of patience with big firms shifting profits to be registered in tax havens like the British Virgin Islands and Bermuda. "We are determined to develop measures to address base erosion and profit shifting" the G20 said in a communique after a two-day meeting of finance ministers and central bankers in Moscow. They vowed to "take the necessary collective action" and awaited an action plan which is set to be put forward later this year by the Organisation for Cooperation and Economic Development (OECD). Online retailer Amazon, Internet giant Google as well as coffee shop chain Starbucks have been under the spotlight for their tax strategies in Britain and other EU countries in recent months. (AFP) ASY 02162254 NNNN