International taxation system to be changed radically

MOSCOW. July 19. KAZINFORM The international taxation system will be changed radically within next two years, Secretary General of the Organization for Economic Cooperation and Development (OECD) Angel Gurria said here on Friday, presenting the action plan prepared to avert the dilution of the taxation base.

In his words, the plan envisages 15 measures, which will permit to change drastically the international taxation system.

He noted that the plan envisages the measures, which permit to eliminate the difference, which exists in the taxation systems of different countries. Meanwhile, he noted that the action plan does not envision the setting of unified tax rates. Meanwhile, in his words, the OECD and G20 states intend to combat the use of interstate differences in the tax legislation that are used for the profit transfer from under the effect of the taxation in 'the tax harbours'.

The international community is drafting the document, Russian Finance Minister Anton Siluanov told a press conference within a meeting of the G20 finance ministers in Moscow on Friday. "We are considering the question to revise the model agreement over the avoidance of double taxation. We are ready to consider the conclusion of a multipartite agreement on this issue, but not bilateral agreements as now," Siluanov said. "To our mind, this will be more efficient than the modernization of the basic bilateral agreements over the avoidance of double taxation," the minister added.

"We agreed to work out the recommendations on the rules to deduct different expenditures, revise the approaches to the regulation of the transfer pricing, toughen the profit taxation rules for the foreign companies and to develop the measures to combat tax evasion amid a rapid development of new types of activity," Siluanov noted.

He noted that the efforts to work out the rules can be fulfilled successfully, if all the countries use them. "As their fulfilment in one country or even a small group of countries will not bring this effect," the minister said with confidence. "In view of the global nature of the world economy, a tougher taxation regime will not bring a good effect in one country," Siluanov added, noting that the G20 states agreed on the global application of the action plan,according to Itar-Tass.

Currently reading