The 2016 G20 Hangzhou Summit was held in September 2016 in Hangzhou, Zhejiang. The Summit was a meeting of the Group of 20, which is an international forum of governments and central bank governors from 19 different countries and the European Union. Members of the G20 include governments and governors from 20 major economic powers worldwide, including the United States, China, France, Mexico, Australia, the UK and more. These economic leaders meet semi-annually at summits to address pressing global issues.
This year, one of those issues related to the ongoing effort to fight global tax evasion. This effort is affecting both individuals and businesses.
As world leaders continue to focus efforts on coming together to protect revenue, individuals who have unpaid taxes and undeclared offshore accounts can expect further developments to continue making it harder to evade tax obligations. Corporations are also facing increased pressure on issues of tax avoidance that involve keeping funds in more favorable foreign jurisdictions.
If you have undeclared offshore accounts you have not reported to the IRS, international investments for which you have not paid taxes, or any concerns about whether your company is in compliance with international tax laws, you should speak with a Maryland tax attorney to find out more about your options. Acting proactively could be a better approach, which results in lesser consequences than waiting for the government to independently discover your unpaid taxes.
Tax Evasion Emphasized as an Issue at the G20 Summit
Global efforts to fight tax evasion were given special emphasis by Chinese President Xi Jinping at the G20 Summit, as he announced China's commitment to help the effort to fight tax evasion and tax avoidance. China will be establishing an international tax policy research center to help combat the problem. China's goal is a “fair, equal and inclusive” global tax consensus that has become increasingly important as the Internet and global economy has made it more difficult for countries to collect corporate revenue.
Both German and U.S. Finance Ministers also emphasized their country's commitments and lauded the international efforts that have been made in recent years to exchange account holder and financial information and develop other means of stopping tax evasion.
The Australian Prime Minister also put tax evasion at the top of his agenda during talks with the other world leaders at the summit. His focus was on pushing for stronger global consensus on profit-sharing by multinational corporations. This is an important focus following the decision by the European Commission to retroactively charge Apple billions of dollars in taxes. That decision pitted the United States efforts to recoup lost revenue that is not being paid due to companies keeping money offshore against the European Union's efforts to recoup lost revenue.
With tax evasion such a prime focus for world leaders, and with enhanced global efforts at improving revenue collection through cooperative tax policies, both businesses and individuals need to ensure they understand tax rules and comply with the legal requirements imposed upon them. US International Tax Advisors can provide assistance in understanding the laws and complying with tax requirements to avoid substantial penalties.
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