The G20 finance ministers and central bank governors met on 23 and 24 July 2016 and issued a final communiqué on 24 July 2016.
In the final communiqué the finance ministers and central bank governors noted that the benefits of economic growth need to be shared more broadly within and among countries with a view to encouraging inclusiveness. All policy tools including monetary, fiscal and structural tools are to be used individually and collectively to achieve sustainable, balanced and inclusive growth. Tax policy and public expenditure will be more growth-friendly with priority for high quality investment. The ministers and central bank governors emphasized the importance of open trade policies and a strong global trading system to promote inclusive global economic growth. They committed to reducing excessive imbalances and promoting greater inclusiveness in the pursuit of growth.
They communiqué noted that the first meeting of the G20/OECD inclusive framework on base erosion and profit shifting (BEPS) has taken place and that this will support widespread implementation of BEPS recommendations and help to tackle the specific challenges faced by developing countries. They also noted the progress on effective implementation of internationally agreed standards on tax transparency and called on all financial centers and jurisdictions that have not yet committed to the standard to commit to implementing the standard on automatic exchange of information by 2018 and sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The ministers requested the OECD to report back by June 2017 on the progress made on tax transparency and on how the Global Forum will manage the country review process in response to requests for supplementary reviews. They requested the OECD to prepare by July 2017 a list of jurisdictions that have not yet made sufficient progress to implementing the international standards on tax transparency, at which time defensive measures will be considered against those jurisdictions.
The final communiqué also encouraged countries and international organizations to assist developing countries in building tax capacity and noted the establishment of the Platform for Collaboration on Taxation by the IMF, OECD, UN and World Bank Group. They noted the recommendations made on effective technical assistance in support of tax reforms and requested a progress update on this matter by mid-2017.
The finance ministers and central bank governors also noted the importance of tax policies in the agenda for sustainable and balanced economic growth and for creating a fair and efficient international tax environment. Tax policy tools are effective in supply-side structural reform for promotion of innovation-driven, inclusive growth. Tax certainty is important in promotion of investment and trade. The meeting therefore requested the OECD and IMF to continue work on pro-growth tax policies and tax certainty.
The meeting also called on the Financial Action Tax Force (FATF) and the Global Forum to come up with initial proposals by October 2016 on ways to improve the international standards on transparency, including making available information on beneficial ownership of legal persons and legal arrangements and exchange of this information internationally.
