G20 approves tax evasion clamp down

G20 leaders pledge on putting into action measures to close current loopholes, which allow large businesses to legally avoid paying tax.

In an international drive to curb tax evasion, a system of information sharing will form the backbone of the measures being applied. Furthermore the G20 leaders have promised help for developing nations to track funds in tax havens.

The international convention to facilitate the exchange of information related to tax evasion was signed by over 50 countries. However none of the developing countries took the plunge, leading G20 countries to guarantee the availability of experts and support in fund tracking.

A G20 statement read how a system would be set up in order to ensure taxing of profits at the stage where profits are performed and value created.

Addressing the concern over the domino effect expected by the tapering of the US Federal Reserve's $85bn-per-month stimulus programme, the G20 approved careful management measures in view of the wind-down of global economic stimulus procedures.