July 30, 2013

Tax avoidance: Developing countries take on multinationals

Tax avoidance: Developing countries take on multinationals: "Zambia and Mongolia have told the BBC they want to stop mining companies shifting profits out of their countries before they can be taxed.
Both are major producers of minerals and say they lose billions of dollars a year in much-needed tax revenue.
However, the Organisation for Economic Co-operation and Development (OECD) has warned this could be dangerous.
The Paris-based developed nations' club thinks unilateral action by individual countries could lead to a confused, fragmented set of rules with no clear standards.
The speaker of the Mongolian Parliament, Mr Z. Enkhbold, told the BBC that Mongolia is cancelling international tax treaties which mining companies had intended to use to take profits from their Mongolian operations tax free."

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