American big business faces the G20 in a fight for $2.1tn in unpaid tax

Pfizer’s controversial takeover of Allergan has thrown a new multinational crackdown on tax avoidance into sharp relief

Less than two months ago, the finance ministers of the G20 gathered for a celebratory dinner in Peru to mark agreement on a “once-in-a-century” package of reforms to combat tax avoidance by multinational corporations that is costing governments up to $240bn a year. But last week a Scottish accountant unveiled a record-breaking $160bn transaction that laid bare quite how much work remains to be done.

Ian Read, chief executive of American drug maker Pfizer, has agreed plans for a so-called “tax inversion”: a takeover deal that involves joining forces with a smaller, foreign rival and assuming its overseas headquarters for tax purposes.

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from Mergers and acquisitions | The Guardian http://ift.tt/1lQrA23