OECD report shows progress towards fairer international tax system

International tax systems are making progress in becoming fairer and more effective, a report led by OECD Secretary-General Angel Gurría has concluded.

In the report compiled ahead of the G20 summit in Hamburg this weekend, Gurria said the improvement of tax systems in global economies has been a major achievement of the group of states.

Among the specific measures cited in the report were an automatic exchange of information between international tax authorities, as well as an increased effort to address tax avoidance by multinational firms.

The report estimated that around €85bn in additional tax revenue related to voluntary compliance mechanisms and offshore investigations was collected.

Recent geopolitical events have indicated a shift away from support for globalisation, but Gurría said that such cooperation on tax practices was one of the great achievements of leading economies.

"Tax issues have been a key priority of the G20 since its inception, and 2017 is the year of implementation," Mr Gurría said in a statement.

"In the midst of the backlash against globalisation, we need to deliver on an agenda of inclusive growth. The work of the G20 and the OECD to repair and improve the international tax system so everyone pays their fair share remains one of the most important responses to these challenges, as well as one which is having a concrete impact."

The leaders of the world’s 20 biggest economies will meet in the German city this weekend to discuss a variety of issues, including topics such as climate change, international trade and security.