Category Archives: OECD

Ireland ends 12.5% tax rate in OECD global pact

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Low-tax policy of past 18 years had attracted multinationals such as Google and Facebook to Dublin

Ireland has dropped its cornerstone low-tax policy of the past 18 years, which helped persuade some of the world’s biggest companies, including Google and Facebook, to site their European headquarters in Dublin.

The decision comes after months of wrangling over the fine print of an Organisation for Economic Co-operation and Development (OECD) agreement to operate a 15% minimum tax rate in more than 130 countries.

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Global deal on 15% minimum tax rate for multinationals edges closer

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Almost 140 countries understood to be in final OECD talks on measures to stop firms moving profits to tax havens

Almost 140 countries are edging closer to a global deal on the taxation of multinationals, with agreement on a minimum 15% rate of corporation tax set to be announced as part of a landmark statement at the OECD in Paris on Friday.

Governments representing more than 90% of the world economy are understood to be in the final stages of talks on a global minimum rate and other measures designed to stop multinationals shifting profits into tax havens.

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European banks storing €20bn a year in tax havens

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Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

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Economic recovery from Covid ‘running out of steam’ – OECD

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Data collected from 38 member countries says UK among the major economies now in the slow lane

The world’s major economies have seen their rapid recovery after easing Covid restrictions begin to run out of steam in the past month as a resurgence in the virus depressed consumer spending, according to the Organisation for Economic Cooperation and Development.

There are signs that the recovery in the US and Japan is losing momentum, the OECD said, while parts of Europe and China have slowed as consumers remain reluctant to eat out, visit attractions and shop as they did before the pandemic.

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Mathias Cormann elected OECD chief despite climate record

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Former Australian finance minister’s candidacy was dogged by complaints from environmental groups

Australia’s former finance minister Mathias Cormann has won a hard-fought election to become the new chief of the Organisation for Economic Co-operation and Development (OECD), despite grave concerns voiced by environmental groups over his record on climate change.

Cormann narrowly defeated the Swedish former EU trade commissioner Cecilia Malmström in the election to lead the 37-member Paris-based organisation, which gives advice to member governments on economic trends, inequality, fighting corruption and trade and is seen as the world’s leading rulemaker on corporate tax.

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‘Not a suitable candidate’: climate groups urge OECD not to appoint Mathias Cormann as next head

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A letter signed by 29 experts and activist groups says Cormann’s climate record should rule him out of secretary-general’s job

International climate change groups and influential advisers on the global shift from fossil fuels have written to the OECD expressing “grave concerns” over Australian politician Mathias Cormann’s bid to be its next secretary-general.

Former Australian finance minister Cormann’s record in a government that “persistently failed to take effective action” to cut emissions while blocking international action meant he was “not a suitable candidate”, the letter says.

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‘Put a big fat price on carbon’: OECD chief bows out with climate rally cry

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Exclusive: Ángel Gurría says action on environmental crises must be defining focus of wealthy countries after Covid

The environment, climate change and the protection of nature must be the defining tasks of rich and major developing countries now and in the years to come, the outgoing head of the Organisation for Economic Co-operation and Development has said, and the institutions that advise governments must take responsibility for keeping them focused on those tasks.

Ángel Gurría said the coronavirus crisis must be dealt with as a matter of urgency, but that the biggest task after that would be tackling the world’s environmental emergencies.

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Mathias Cormann continues to talk up ‘green recovery’ in ‘vision statement’ for top OECD job

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Exclusive: Former finance minister’s pitch pushes ‘zero net emissions as soon as possible’, which contradicts record while in Australian government

Australia’s former finance minister Mathias Cormann is continuing to talk up the importance of a “collective green recovery” on the campaign trail to be the next secretary general of the Paris-based Organisation for Economic Co-operation and Development.

In a “vision statement” for the position obtained by Guardian Australia, Cormann says undertaking “effective global action on climate change is a must and we must get to zero net emissions as soon as possible”.

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Banks around world in joint pledge on ‘green recovery’ after Covid

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Climate finance goals declared but campaigners highlight omissions over fossil fuels and poor nations’ support

The world’s publicly financed development banks have pledged to tie together their efforts to rescue the global economy from the Covid-19 crisis and the climate emergency, using their financial muscle to assist a green recovery for poor countries.

But the banks stopped short of pledging an end to fossil fuel finance, and did not set out firm targets for how much funding they would devote to a green recovery in a declaration signed on Thursday by 450 development banks worldwide.

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Countries urged to step up spending as national goals go unmet

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Campaigners call for action as majority of big countries fall short of 0.7% aid target

The world’s major powers have failed to make progress towards meeting their commitments on aid spending, according to new data, prompting calls for countries to step up in the face of the Covid-19 outbreak.

The Organisation for Economic Cooperation and Development’s (OECD) update on spending in 2019, published on Thursday, showed aid contributions by its forum of the largest donors were less than half the targeted 0.7% of their gross national income.

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IMF boss says global economy risks return of Great Depression

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Kristalina Georgieva compares today with “roaring 1920s” and criticises UK wealth gap

The head of the International Monetary Fund has warned that the global economy risks a return of the Great Depression, driven by inequality and financial sector instability.

Speaking at the Peterson Institute of International Economics in Washington, Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way.

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UK growth will dip to 1% even if no-deal Brexit avoided, warns OECD

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Prospect of crashing out of EU leaves UK more exposed to global financial risks, thinktank says

The UK’s GDP growth rate will slip to 1% next year even if a no-deal Brexit is avoided, according to the Organisation for Economic Development and Cooperation.

The OECD said the economy would slow down from growth of 1.2% this year if parliament passes Boris Johnson’s Brexit deal before the 31 January deadline, before returning to 1.2% in 2021.

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Trump’s China trade war risks damaging US economy, says OECD

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Intensification of tariff dispute also likely to knock almost $600bn off world economy

Donald Trump has been warned by the west’s most influential economics thinktank that further escalation of the US-China trade war would unleash significant damage for the American economy, as well as the rest of the world.

The Paris-based Organisation for Economic Co-operation and Development (OECD) said that an intensification of the dispute between Washington and Beijing would likely knock as much as 0.7% off the level of global GDP by 2021-22.

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Raise taxes on firms that harm nature, OECD tells G7 countries

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Report calls for change of priorities and culture to avert catastrophic biodiversity loss

Governments need to ramp up investment in nature restoration and raise the tax burden on companies that degrade wildlife, according to recommendations made to the G7 group of rich nations.

The proposals are part of a growing debate on how to radically change humanity’s relationship with nature in the wake of a new UN mega-report that showed an alarming decline in the Earth’s life-support systems.

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