OECD: Global firms need new tax rules

Multinational companies such as Starbucks, Amazon and Google have complicated tax systems - all say they operate within the law

Moves to tackle corporate tax avoidance on a global scale have been unveiled by the Organisation for Economic Co-operation and Development (OECD).

The action plan is aimed at multinational companies that shrink their tax bills by shifting their profits from one country to another.

Firms including Starbucks, Amazon and Google have been accused of pursuing such strategies.

They have all said they operate within the law.

The OECD says 44 nations making up 90% of the world economy favour its plan.

Announcing the proposals, the OECD's head of tax, Pascal Saint-Amans, told journalists in Paris that they would "change the rules of the game" by making sure companies paid taxes in the country where profits were generated.

At present, firms can exploit agreements intended to avoid double taxation of profits by using them to obtain double tax deductions instead.

They also use internal billing procedures to ensure that profits are registered in countries where corporate tax levels are lower.

Under the OECD plan, a country-by-country model would require firms to declare their revenue, profit, staffing and tax paid in each jurisdiction.

The measures will go before finance ministers at the next meeting of G20 nations in Australia this weekend.