G8 leaders agreed on new measures to deal with money laundering and tax avoidance. They include giving automatic access to information to their residents` tax affairs and a requirement that all shell companies identify their effective owners. G8 includes UK, US, Germany, France, Italy, Russia, Canada and Japan.
The main purpose of the new measures is to “fight the scourge of tax evasion”.
David Cameron hosted the summit in Northern Island. Another important event, which happened is the launch of free trade negotiations between EU and the US, which Cameron referred as “the biggest bilateral trade agreement in history”. Hopefully the future legal agreement will be beneficial for both sides.
The Three Ts – Tax, Trade and Transparency – this is placed at the top of the UK agenda, for its presidency of G8
The summit was overshadowed by the conflict in Syria and Vladimir Putin called for talks for Syrian peace to be held in Geneva as soon as possible, which was discussed, however no for the Geneva talks was given, and the statement made no mention of what role Mr Assad could play in the future
The summit has been overshadowed by the conflict in Syria.
The G8 leaders – including Russian President Vladimir Putin, an ally of Syrian leader Bashar al-Assad – backed calls for Syrian peace talks to be held in Geneva “as soon as possible”.
All G8 leaders agreed on that transparency is required for multinational companies, which should tell the authorities what tax they have paid 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. Speaking during the summit, Mr Osborne said more progress had been made on reforming the global tax system in the past 24 hours than the “past 24 years”.
These and many other topics have been discussed during the summit.