Tax clampdown

No Escape for Evaders

G20-Gipfel in Australien
The G20 is gradually getting more transparent when it comes to tax.
  • Why it matters

    Why it matters

    Large multinational companies have avoided paying billions of euros in tax by using legal tax evasion measures.

  • Facts

    Facts

    • The G20 will enact new profit-shifting and tax disclosure rules from 2016.
    • All companies with sales of more than €750 million, or $848 million, will have to disclose tax payments.
    • From 2017, Swiss banks will provide details of foreign accounts to relevant governments.
  • Audio

    Audio

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In the battle against tax evasion by large multinational companies, the authorities have one very effective weapon – perseverance.

Two years ago, the world’s 20 largest economies – the G20 – decided to take action against illegal tax evasion. But chief financial officers at global corporations weren’t all that worried. Experience had taught them that international efforts on enacting new tax rules take a long time and mostly peter out after a few years.

Since the financial crisis, however, the world is very different. More than 50 countries are working to undercut tax evasion, which was often shielded with the help of Swiss banks. Starting in 2017, banks have agreed to provide data on foreign accounts to their respective home countries.

Swiss banks have been preparing for the move since 2013, and have already begun to request tax documents from clients.

The plan means tax authorities will no longer have to depend only on stolen data, such as the list of possible tax evaders taken from Swiss HSBC, which Christine Lagarde, French finance minister at the time, passed on to European Union colleagues in 2010.

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