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G20 Finance Ministers Communiqué Published following Buenos Aires Meeting — Orbitax Tax News & Alerts

The G20 Finance Ministers Communiqué has been published following the meeting held 21 to 22 July 2018 in Buenos Aires, Argentina. With respect to tax and transparency, the main text of the Communiqué includes the following:

We support a globally fair, sustainable, and modern international tax system. We reaffirm the importance of the worldwide implementation of the Base Erosion and Profit Shifting package. We remain committed to work together to seek a consensus-based solution to address the impacts of the digitalisation of the economy on the international tax system by 2020, with an update in 2019. We call on all jurisdictions to sign and ratify the multilateral Convention on Mutual Administrative Assistance in Tax Matters. Jurisdictions scheduled to commence automatic exchange of financial account information for tax purposes in 2018 should ensure that all necessary steps are taken to meet this timeline. We support the OECD’s strengthened criteria to identify jurisdictions that have not satisfactorily implemented the internationally agreed tax transparency standards. Defensive measures will be considered against listed jurisdictions. We support enhanced tax certainty and tax capacity building, including through the global Knowledge-Sharing Platform for Tax Administration under the umbrella of the Platform for Collaboration on Tax, and welcome the Latin America Academy for Tax Crime Investigation in Buenos Aires.

Further, the Annex to the Communiqué includes the following on issue for further action:

We ask the OECD to report by the 2018 Leaders’ Summit on the number of jurisdictions that are at risk of being considered as not having satisfactorily implemented internationally agreed tax transparency standards. We also ask the OECD to prepare a list by the 2019 Leaders' Summit of the jurisdictions that have not yet sufficiently progressed toward a satisfactory level of implementation. We ask the OECD and the IMF to report to Finance Ministers and Central Bank Governors in 2019 on progress made on tax certainty.

We reiterate our call for the Platform for Collaboration on Tax to develop its workplan on its commitments by the IMF/WBG Annual Meetings this year and provide a progress report in 2019.