G-8 Nations Pledge To Crack Down On Corporate Tax Evaders
The world's wealthiest nations are promising to fight what they call the scourge of tax evasion. This week's meeting of the Group of Eight industrialized countries concluded with a pledge to end the use of tax shelters by multinational corporations.
But there are still big questions about how they will make a dent in the problem.
In the aftermath of the global recession, countries all over the world have struggled with budget shortfalls. More and more of them have come to blame part of their revenue problems on one culprit — tax avoidance.
The G-8 statement this week represents a kind of doubling down on the determination of wealthy countries to take on the problem.
"If you want a low-tax economy, which I believe is fundamental to growth, you have to collect the taxes that are owed," British Prime Minister David Cameron said Tuesday. "That is only fair for companies and for people who play by the rules."
Big Questions Remain
But the G-8 statement was short on specifics about how to address the problem.
It says tax authorities in different countries should share information more readily. It also says multinational companies should be more transparent about the taxes they pay.
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