Global Tax Reform on the Horizon

The United States has joined the international effort to make global tax reform a goal of the “Group of 20” (G20) countries, seizing on the perception that multinational companies are abusing perceived “loopholes” to avoid taxation.

“The G20’s work on tax cooperation is among our most important new initiatives,” says Treasury Secretary Jack Lew, who also thinks that all nations should adopt the automatic exchange of information as a global standard.

“This is not against multinationals,” quoth Organization for economic Cooperation and Development Director-General Angel Gurria. However, “Multinationals have to have legal assurance that they’re not going to be double-taxed, but they have to contribute; their fair share has to be put on the table.”