Y20 proposes an international tax regime to fight offshores

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Introducing taxes on offshore transactions would require establishing an international tax regime, Ksenia Yudaeva, Chief of the Presidential Experts Directorate and the Russian G20 Sherpa told a Y20 meeting held on the margins of the 17th St. Petersburg International Economic Forum (taking place on June 20-22).

If just one country introduced a special tax regime, it would find itself at a disadvantage and might even see inbound financial flows dry up, Yudaeva explained.

An international regime for taxation of transactions to divert capital into offshore jurisdictions must, therefore, be created.

Y20 leaders had earlier presented their proposals for G20, including a tax on offshore capital transactions as part of international financial system reform.

Tax legislation and fighting offshores will be among the key items on the agenda for the G20 summit in St. Petersburg in September 2013. 

The three-day Youth 20 (Y20) Summit held under Russia's G20 presidency on the eve of the 17th St. Petersburg International Economic Forum (SPIEF) has opened earlier on Thursday.

According to the organizers, 106 young delegates from G20 member countries and six special guests of the Russian chair - Brunei, Spain, Kazakhstan, Senegal, Singapore and Ethiopia – convened at the Lenexpo Exhibition Complex.