Little Progress Achieved in G20 Fight Against Tax Evasion

A report from Spanish observatory on foreign affairs from the Fundación alternativas, reveals that measures adopted by the G20 to fight against tax havens and tax evasion have not been implemented yet. The report entitled “The fight against tax havens and tax evasion: Progress since the London G20 summit and the challenges ahead” proposes ways to implement measures that have already been adopted.

The financial crisis in 2008 highlighted the harmful effect of tax havens on the economy of developed and developing countries. It was a key issue at the G20 London Summit in April 2009, where leaders announced a number of important steps to combat tax havens. However, that initial drive has gradually lost momentum.

The measures agreed at the London Summit have proven incomplete, and in subsequent summits G20 leaders have expressed good intentions but have not taken concrete measures. It is hoped that the next summit in Cannes (November 2011) will re-launch important aspects of the fight against harmful tax practices.

On the other hand, during the Spanish and Belgian presidencies of the EU in 2010, some important steps were taken towards greater transparency in the international financial system – and in the practices of multinational companies. These measures, if fully implemented, could have a significant impact.

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