The 2018 meeting of the G20 Leaders’ Summit took place in Buenos Aires, Argentine on 30 November and 1 December and international tax agenda was one of the key issues discussed in the summit.

G20 Leaders’ Declaration

In their final communiqué, the G20 leaders agreed to continue to work on ensuring a globally fair and sustainable international tax system, and pledged support for the Base Erosion and Profit Shifting (BEPS) project and the automatic exchange of financial account information (AEOI).

They expected an update of the work to address the impacts of the digital economy on the international tax system in 2019 and a final report by 2020.

Measures will also be considered against jurisdictions that fail to implement tax transparency standards.

We will continue our work for a globally fair, sustainable, and modern international tax system based, in particular on tax treaties and transfer pricing rules, and welcome international cooperation to advance pro-growth tax policies. Worldwide implementation of the OECD/G20 Base Erosion and Profit Shifting package remains essential. We will continue to work together to seek a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system with an update in 2019 and a final report by 2020. We welcome the commencement of the automatic exchange of financial account information and acknowledge the strengthened criteria developed by the OECD to identify jurisdictions that have not satisfactorily implemented the tax transparency standards. Defensive measures will be considered against listed jurisdictions. All jurisdictions should sign and ratify the multilateral Convention on Mutual Administrative Assistance in Tax Matters. We continue to support enhanced tax certainty and tax capacity building in developing countries, including through the Platform for Collaboration on Tax.

OECD Secretary-General Report to G20 Leaders

OECD Secretary-General Angel Gurría also made a report to the G20 Leaders on the progress of the BEPS project and the AEOI.

Below are key points from the report on AEOI:

  • It is estimated that by June 2018, jurisdictions around the globe have identified EUR 93 billion in additional revenue (tax, interest, penalties), as a result of voluntary compliance mechanisms and other offshore investigations put in place since 2009.
  • AEOI is now happening in 83 jurisdictions that committed to exchange by 2018
  • Details on hundreds of billions of euros of accounts have been exchanged in 2017
  • On jurisdictions that fail to implement the tax transparency standards, the OECD has delivered strengthened criteria to be applied at the time of next year’s Summit and there are 15 jurisdictions are at risk of being identified.

Key points on BEPS:

  • The key issue in 2018 remains how to address the tax challenges arising from digitalisation.
  • The G20 has an opportunity to seize the moment by maintaining the political focus on reaching a global, consensus-based solution. A strong showing of unity and commitment to work together at the highest political level will be a key ingredient in finding the common ground.
  • The first results from the peer reviews of the BEPS project are in and show strong implementation by the members of the BEPS Inclusive Framework.


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