G20 to spotlights corporate tax breaks
International taxation is likely to be the primary focus of the G20 meeting this weekend in Brisbane, Australia.
At the G20 summit in Brisbane this weekend, leaders are likely to carry on rolling back protectionist measures adopted since the global financial crisis of 2008. The leaders, who represent 85 per cent of the world economy, are under real pressure to deliver on economic growth and create jobs across the world.
The G20's host Australia is also confident that the meeting can settle on plans to ensure that the big banks that are systemically important for the world financial system will be properly capitalised and that the meeting will lay down "too big to fail" initiatives.
But it is the taxation agenda that is likely to become the primary focus of the meeting. With new EC head Jean-Claude Juncker under pressure over generous tax concessions offered to top global companies when he was Luxembourg's prime minister, leaders will be taking a serious look at international taxation and how they can make multinationals pay tax where they earn profits.
As Australia's Treasurer Joe Hockey has made clear, if someone does not pay the tax due to a country, it is theft and "it undermines the ability of that nation to be able to deliver the sorts of services that are essential to alleviate poverty and to reduce inequality".
