Tax haven drive will mean greater scrutiny for multinational corporations

Posted on / Global Economy - Tax haven drive will mean greater scrutiny.

The FT notes:

The international drive to prise open tax havens could expose businesses to greater scrutiny as a result of a little-noticed feature of hundreds of new deals aimed at tracking down tax evaders.

Jeffrey Owens, director of the centre for tax policy and administration at the Paris-based Organisation for Economic Co-operation and Development, said the ability to request details about companies was “an important aspect” of the agreements on tax information exchange that have proliferated in recent months.

He said: “I think the world is in the process of changing. It will have a big impact on corporations and high net worth individuals.”

That's true.

But as the FT notes:

Over the past year, campaign groups have succeeded in persuading the OECD to consider new guidelines on transparency after claiming that transfer pricing abuses allow companies to divert revenues from developing countries to tax havens.

This may have an even bigger impact!