FX.co ★ G20 leaders focus on tax transparency rather than Brexit

During the G20 summit, participating countries decided not to pay much attention to Britain’s withdrawal from the European Union.
This year China holds the presidency of the summit of the Group of 20 leading economies. Members discussed existing risks for global economy such as oil prices and geopolitics. However, Brexit was just mentioned. The failed coup attempt in Turkey was not included in the final communiqué.
Analysts say that Brexit theme was on the background because markets have already reacted and calmed down, so did the politicians.
Moreover, central banks said Brexit was a major challenge for countries’ banking systems.
G20 officials also said that the Brexit vote creates uncertainty for the world’s economy and its consequences are yet to be analyzed.
The final communiqué of the G20 summit contains outlook for the pace of the world’s economic recovery and warns about downside risks amid volatile oil prices and low inflation in most of the nations.
According to the communiqué, global economic situation is weighed down by geopolitical conflicts, terrorism, migrant crisis as well as volatility on financial markets. Finance ministers will also prepare a black list of jurisdictions that do not exchange tax information.
In addition, the G20 countries called all countries which have not yet done so to start implementing the standard on automatic exchange of information by 2018 and to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
The G20 members said they endorse the proposals made by the OECD on the criteria to identify non-cooperative jurisdictions with respect to tax transparency. They asked the OECD to report by June 2017 on the progress made.