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IT MAY not have the snappiest of names, but the Action Plan on Base Erosion and Profit Shifting, crafted by the Organisation for Economic Co-operation and Development (OECD), a club of 34 mostly rich countries, marks a potentially important moment in the fight against vigorous tax avoidance. There is, however, a long way to go before the plan can live up to its billing by Ángel Gurria, the OECD’s secretary-general, as “a turning-point in the history of international tax co-operation”. As public ire has grown over tax-planning ruses that allow many multinationals to pay rates of income tax far below the statutory level, pressure has mounted on policymakers to move beyond their “pay your fair share” rhetoric.

Source : www.economist.com