G-20 and Taxation Rules for Digital Giants: Kyodo

The world’s major economies agreed in a draft statement to accelerate tax collection from multinational digital companies like Google and Facebook. “The G-20 finance ministers and central bank governors will also warn that the world economy continues to face downside risks from trade conflicts between leading economies, while calling for accommodative monetary policy to ensure the economy is recovering,” reports Kyodo News. International cooperation is a required for a fair tax system that encourages sustainable growth. “The finance chiefs will discuss how to create global tax rules covering those companies, based more on where they make their sales rather than where their permanent offices are located.” The G20 finance chiefs will discuss fiscal policy, inflation policies, infrastructure financing, current account imbalances and transparent communications on central bank decisions and debt. The officials will also reiterate commitment to avoid currency devaluations for the purpose of unfair trade advantages – and tighten regulations on money laundering, terrorism and cryptocurrency. The 20 major economies anticipate moderate growth into 2020. – YaleGlobal