George Osborne and Wolfgang Schauble, Germany's federal minister of finance, have called for more international cooperation in strengthening tax standards at this weekend's G20 meeting.
– George Osborne, Chancellor
We want competitive taxes that say Britain is open for business and that attract global companies to invest in and bring jobs to our country, but we also want global companies to pay those taxes.
The best way to achieve that is through international action that ensures strong standards, without pricing ourselves out of the global market.
In a joint statement, the ministers said:
– Joint statement by the UK and Germany
Global companies are a significant source of growth, investment, employment and tax in Germany, Britain and the EU as a whole.
However, international tax standards have had difficulty keeping up with changes in global business practices, such as the development of e-commerce in commercial activities.
As a result, some multi-national businesses are able to shift the taxation of their profits away from the jurisdictions where they are being generated, thus minimising their tax payments compared to smaller, less international companies.