The Leaders of the G7 met in Charlevoix, Quebec, Canada to discuss common issues on investing in growth, environment protection, etc. The Charlevoix G7 Summit Communique has been published by the Japanese government, in which the leaders agreed on joint efforts to tackle tax challenges brought by digitalization of economy.
The leaders have been aware of the issue that digitalized multinationals are not paying a fair share of tax considering their gains and capacity. The G7 members will exchange approaches and support international efforts to deliver fair, progressive, effective and efficient tax systems. In addition, the members promise to continue to fight tax evasion and avoidance by promoting the global implementation of international standards and addressing base erosion and profit shifting, among which the impacts of the digitalization of the economy on the international tax system remain “key outstanding issues”. In this occasion, the leaders welcome Tax Challenges Arising from Digitalisation – Interim Report 2018 released by the OECD and will commit to working together to seek a consensus-based solution by 2020.
The report was issued in 2018 March as a follow-up to the work delivered in 2015 under Action 1 of the BEPS Project. Instead of suggesting any temporary measure, it only lists considerations to be taken into account on designing such a unilateral action. According to the report, the next meeting of TFDE will be held in July 2018. A final report is expected to be delivered by 2020, with an update in 2019.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):