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Technology / Software

US blocks tax avoidance reform proposals

France has failed to gain support from the US for its new international tax proposal, aimed at targeting major tech firms that use loopholes to dodge tax.

Citing sources familiar with the matter, the Guardian reported that senior officials in Washington have said they will not stand for rule changes that narrowly target the activities of some of the nation’s ‘fastest growing’ multinationals.

Last week, the G20 group of nations asked the Organisation for Economic Co-operation and Development (OECD) to draw a draft policy to prevent companies from shifting their profits into offshore tax-havens, so that they pay less tax in the countries of operation.

The US is reportedly in favour of moderate changes to the rules instead of major overhauls for the policies.

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A US senate committee alleged that Apple has used a complex web of offshore entities including three foreign subsidiaries to dodge taxes in the country.

Google, Amazon and Starbucks are currently being probed by the UK lawmakers for using complex accounting methods to avoid tax liabilities in the country.

Earlier this month, it was reported that Apple avoided paying UK corporation tax in 2012.

Vodafone has also said it did not pay corporation tax in the UK for the year to March 2013, even though it generated over £5bn in revenues in the country.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

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