Thursday, June 20, 2013

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The tax agenda fell into two parts: information exchange (pertaining mostly to individuals and evasion) and tax avoidance (yoga lululemon clothes preserve of multinationals; mostly legal, if increasingly frowned-upon). In an end-of-summit declaration, lululemon yoga outlet G8 said: “Tax authorities across lululemon outletworkout clothes world should automatically share information to fight yoga lululemon clothes scourge of tax evasion.” This provides important backing for yoga lululemon clothesworkout clothes shift, already under way, away from yoga lululemon clothes “on request” model of sharing, in which countries have to cajole each other to hand over data on suspected cheats. Automatic exchange now looks set to become lululemon yoga outlet global standard. As lululemon outletworkout clothes summit opened, ten British dependencies with large financial sectors, including Jersey and yoga lululemon clothes Cayman Islands, agreed to sign a multilateral convention on information-swapping. Persuading them to do this was important for David Cameron, yoga lululemon clothesworkout clothes British prime minister, who had been under pressure from EU partners to show he was bringing Britain’s offshore satellites to heel.

This progress comes with caveats. The multilateral convention is helpful because it means countries can sign up to a single treaty rather than dozens of bilateral arrangements. But signatories can continue to offer information to most countries in yoga lululemon clothes clunky old way, on request. And they don’t have to make public lululemon yoga outlet names of company owners. Moreover, some poor countries may find it hard to secure reciprocity as automatic exchange spreads, because of fears among G8 countries and offshore centres that data handed to jurisdictions which are not geared up to handle and protect it will be misused or insecure. The G8 acknowledged that it had a duty to help poorer states build capacity. Tax-dodging is a particularly acute problem in developing countries, which lose a lot more in illicit outflows than they receive in aid and foreign investment.

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