Osborne calls for profit-shifting crackdown

THE UK AND GERMANY want a crackdown on global companies shifting profits into different jurisdictions to lower tax bills.

In a statement by chancellor George Osborne and his German counterpart Wolfgang Schäuble to the G20, it was indicated the two countries want better coordination across borders to prevent corporate tax avoidance.

"...International tax standards have had difficulty keeping up with changes in global business practices, such as the development of e-commerce in commercial activities," they said in the statement.

"Britain and Germany want competitive corporate tax systems that attract global companies to our countries, but also want global companies to pay those taxes. That is best achieved through international action in the G20 and other relevant international fora to ensure strong standards."

However, they said that they want their nations' tax systems to remain "competitive".

The UK recently clarified rules around the taxation of controlled foreign companies.