The OECD club of rich countries is battling poorer states over a controversial global tax deal that could affect multinational tax schemes
Visiting South Africa and Nigeria last week, David Cameron wrote in a South African newspaper about the benefits of "effective tax systems" - but failed to mention aggressive tax avoidance by multinational corporations, something that South Africa's finance minister has called "a serious cancer eating into the fiscal base of many countries".
Meanwhile, the British government is locked in battle with South Africa and other developing countries over a controversial global tax deal, which is due to be finalised in Geneva on Wednesday; a deal that could potentially have a large impact on multinational tax schemes. It has become a rather hot potato.
On one side of this fight sit Britain, the US, the EU and other rich countries, which want to maintain the pre-eminence of the OECD (Organisation for Economic Co-operation and Development), a club of rich countries, as the body that dominates the setting of global tax rules. On the other side, along with South Africa, sit Argentina, Brazil, China, India, Mexico and other developing countries, which want developing countries to have a bigger voice.[view whole blog post ]