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Russia's Finance Minister: "In global economy, tough tax regime in one country does not bring effect"

Anton Siluanov believes it would be more effective to sign multilateral agreements on the case instead of bilateral ones
Photo ITAR-TASS
Photo ITAR-TASS

MOSCOW, July 19 (Itar-Tass) - The G-20 countries have agreed a joint actions plan on raising transparency of taxation. Russia’s Finance Minister Anton Siluanov said the document had been suggested by the international community.

“We have been considering changes to agreements on avoiding of double taxation,” Siluanov said. “We are ready now to consider signing multilateral agreements on the case, not bilateral ones, like we did earlier.”

“We believe it would be more effective than to modernise basic agreements on avoiding of double taxation,” the finance minister added.

“We have agreed to offer recommendations on the regulations for deducting various expenses, to revise approaches to regulations for transfer pricing policies, to tougher rules for taxing revenues of foreign companies, to suggest measures to fight tax evasion in the rapidly growing businesses - in the so-called ‘digital economies’,” Siluanov said.

He stressed the efforts to offer new regulations may be implemented successfully if used by all countries.

“Implementation of the rules in one or in a group of countries cannot give the effect,” he said. “In the global character of the international economy, tougher tax regimes in one country will not be effective.”

The finance minister added the G-20 countries had agreed on a global implementation of the plan.