KYOTO – The Organization for Economic Cooperation and Development (OECD) said on Thursday around 100 countries are likely to join global efforts to fight corporate tax avoidance amid growing public concern following revelations contained in the so-called Panama Papers.
“We’re here to start our collective journey toward a fairer, more equitable and transparent international tax system,” Japanese Finance Minister Taro Aso said at an OECD meeting in Kyoto in which participants were discussing global cooperation in addressing tax avoidance.
The OECD’s Committee on Fiscal Affairs started a two-day gathering to prompt more countries to take part in ongoing efforts by 46 nations to impose tougher international rules to prevent tax avoidance by multinational enterprises.
According to the Paris-based organisation, 35 countries and jurisdictions have formally joined the new inclusive framework and 22 others attending the meeting are expected to join the efforts by the end of this year.
I Word Understanding
Global efforts– Force of energy applied to worldwide organization
Avoidance – The act of keeping away from or preventing from happening
Revelations- Announcement to public
Inclusive framework– Pattern of practices based on sets out recommendations of businesses and organizations
II Have your say
1. What are Tax system implemented in your country? How often do you pay those?
2. Would you agree with Finance Minister Taro Aso on to prompting more countries to join the said objective?
3.Japan has concluded tax treaties with many countries for the purposes of avoiding double taxation of income internationally and preventing tax evasion.
The provisions of tax treaties supersede those of domestic law. In determining the tax liability in Japan of individuals and corporations domiciled in a country with which Japan has a tax treaty, the location of the source of income deemed taxable income under Japanese law.However Japan tax treaty is imposes 20% withholding tax on dividends, royalties,discounted bonds and others to domestic companies and others.
The beneficiaries of Japan Tax treaty system are as follows (former members and present members)
U.S line of Business
U.K line of Business
France Line of Business
Australia Line of Business
Brunei line of Business
Philippines line of Business
Pakistan line of Business
South Korea line of Business
What kinds of benefits have you received from Japan Tax Treaty?
4.If you were a President of a country, would you agree to adopt Japan Tax Treaty?