A group of institutional asset owners and managers have jointly called for comprehensive transparency and disclosure to be adopted as core principles in reform of the international taxation system to be put before the G20 Leaders Summit in Brisbane on 12-14 November 2014.
The group, including the £150bn UK Local Authority Pension Fund Forum (LAPFF), Quebec fund Batirente, Royal London Asset Management, Paris-based OFI Asset Management, and Triodos Investment Management from the Netherlands, on Wed 12.11.2014, issued a statement supporting the initial stage of the OECD BEPS Action Plan and urging a general improvement in corporate governance, transparency and disclosure standards around taxation issues.
“Modernising the international taxation framework cannot be separated from global financial integrity, rebuilding trust and strengthening resilience in international financial structures and investment markets.” LAPFF Chair, Councillor Kieran Quinn said. As international investors, ensuring sound governance practices are embedded in corporate activities, including taxation planning and associated reporting and disclosure mechanisms is a fundamental concern, he said.
Mr Quinn said financial secrecy, opaque accounts and aggressive tax practices “do not best meet our underlying objectives as inter-generational investors aiming for sustainable value creation”. He said “we urge G20 Leaders to ensure transparency and disclosure, are directly embedded as core principles in relevant tax treaties and national agreements and to work towards a comprehensive multilateral agreement at G20 2015.” He said it was LAPFF’s view that taxation reforms that ensure comprehensive transparency and disclosure on a country-by-country, public basis “will best assist us as asset owners to undertake our own investment governance, risk management and due diligence obligations, vital to carrying out our fiduciary duties”.
[LTN 219, 12/11/14]