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⍰ ASK What is the role of international organizations, such as the OECD and G20, in addressing the issue of offshore tax avoidance and tax evasion?

International organizations play a crucial role in addressing the issue of offshore tax avoidance and tax evasion. Some of the key roles of organizations like the Organisation for Economic Co-operation and Development (OECD) and the G20 include:

  1. Promoting cooperation between countries: The OECD and G20 work to encourage cooperation between countries on tax matters, with a focus on reducing tax avoidance and evasion. They facilitate the exchange of information between tax authorities and help to establish international standards for tax transparency and cooperation.
  2. Developing and implementing international tax standards: The OECD and G20 are involved in the development and implementation of international tax standards, including the Base Erosion and Profit Shifting (BEPS) project, which aims to address the tax planning strategies used by multinational corporations to reduce their tax liabilities.
  3. Encouraging transparency: These organizations encourage transparency in the tax system by promoting the automatic exchange of tax information between countries and advocating for greater transparency in the reporting of tax-related information by companies.
  4. Monitoring and enforcing compliance: The OECD and G20 work to monitor and enforce compliance with international tax standards and agreements, including the implementation of measures to prevent tax avoidance and evasion.
 

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