The G20 summit recently held in China has exemplified the importance for international tax cooperation to attain ‘an internationally fair and modern global tax system’, after President Obama warned of the risks if various countries ‘race to the bottom’ in tax policies.
At a press conference regarding the conclusion of the summit, (his last as US President) Obama said international cooperation on tax matters was important to ‘regain the trust’ of people who fear the system may be rigged.
He was speaking after the recent ruling from the EU, which requires US technology Conglomerate Apple to pay back €14B in back taxes after its tax arrangements with Ireland’s authorities were considered to be illegal state aid.
The head of policy and advocacy reacted to the G20 announcements: “It is encouraging to see the President’s commitment to create a fairer economy. It’s great to see an emphasis on creating jobs as well as tackling tax avoidance. However tangible action needs to be taken relatively quickly.”