IMF chief presses for tax transparency in multinational companies

Panama papers are the harsh reality of tax evasion and tax heavens used by the multinational companies and corporate world. The problem is not constrained any single country it’s a global issue. The panama papers have names of influential personalities and corporate companies covering half the globe. Still the papers have not been fully revealed, surface scratch of the papers has took the world by storm.
Speaking amid this crisis, the International Monetary Fund chief Christine Lagarde pressed for international financial transparency in tax avoidance among multinational companies. Developing countries are the worst hit due to tax evasion.
Even major countries like Britain lose trillions of pounds due to tax heavens. A study Oxfam showed that even giants like Apple and General electric stash trillions in off-shore accounts.
This deprives the countries of the much needed revenue from corporate world. Lagrade spoke about these issues in the spring meetings of international monetary fund and World Bank.
IMF has decided to propose changes to battle tax evasion along with other international financial organizations.
The G20 summit has signed for automatic information exchange among its member nations with respect to tax evasion. The European Union has also decided to draft a list of tax heavens and issued that big corporate will have to reveal their earnings and tax details.
However tax evasion may seem less of an offence but the complete revelation of “panama papers” is expected to show the kind of activities the money is used for.

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