Multilateralism needed to combat tax evasion and avoidance effectively

According to the Committee on Political Affairs and Democracy, which met today in Paris, multilateralism is the only means of achieving results in the fight against international tax evasion and avoidance.

The draft resolution adopted by the committee – on the basis of the report by Alfred Heer (Switzerland, ALDE) on the activities of the OECD in 2016-2017 – underlines that, thanks to greater tax transparency, multilateralism is an effective means of combating base erosion and profit shifting as well as aggressive tax planning.

In this respect, the committee congratulated the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes on the results achieved in the area of exchanging financial account information.

Agreeing with the OECD, the committee also said that the slow upturn in growth means that demand must be stimulated, but more through fiscal policy than through monetary policy, and called on OECD member States to seize the opportunity of exceptionally low levels of interest rates to revive public investment.

Lastly, the committee asked the OECD to continue its work on the relationship between income/wealth inequality and growth and on the existence of indicators on inequality. As regards youth unemployment, the parliamentarians concluded that investing in education and skills would generate future employment and foster growth.

The draft resolution will be debated by the PACE at its next plenary session (Strasbourg, 9-13 October 2017).
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Since 2011, the Committee on Political Affairs has reviewed the activities of the OECD in reports which are debated in plenary during the autumn session. On that occasion, the PACE is enlarged to include the delegations of the national parliaments of OECD member States which are not Council of Europe members. The OECD Secretary General also takes part.