On July 19-20, Moscow hosted the G20 Finance Ministers and Central Bank Governors' Meeting. The meeting agenda included the following issues: the G20 Framework agreement for strong, sustainable and balanced growth; IFA's reform; the financial regulation reforms and financial inclusion, and also financing for investment (one of the priorities of the Russian G20 Presidency), counteracting tax base erosion and profit shifting, as well as energy sustainability, commodity markets transparency and climate finance.
Addressing the meeting delegates, Russian Finance Minister Anton Siluanov said that the G20 Financial Track is working on stimulating long-term investment.
"The research group is leaded by Indonesia and Germany has already completed one of its tasks - gathering information on the experiences and country-specific practices of stimulating long-term investment," Anton Siluanov said in his opening remarks. "We also submitted for approval work plan presented by the research group, which will act until at least the end of 2014."
Mr. Siluanov also explained that the Group will analyze mostly country-specific factors, such as the development of capital markets, including the mobilization of institutional investors' resources, enhancing efficiency and quality of public investment and the impact of the financial regulation reform on long-term investment. The research group also has another task - to find financing sources presented as alternative for banking finance.
"It is gratifying to note that the work plan includes the identification of approaches to the development of stock markets in local currencies," Mr. Siluanov said. "Recommendations to this effect will be in demand in emerging markets, including Russia."
On July 19, on the eve of the G20 Finance Ministers and Central Bank Governors' Meeting, Angel Gurria, the Secretary-General of the Organization for Economic Cooperation and Development (OECD), presented a report included the Action Plan on Base Erosion and Profit Shifting (BEPS). This document contains proposals for the development of mechanisms and regulations to counteract unfair tax competition, including developing new set of standards to prevent double non-taxation.
"These rules can be implemented successfully if the countries use them all together, if it will implemented only by a single country or even by only a group of countries - there will be no needed effect," Mr. Siluanov said at the news conference following the presentation of the report. "We agreed on the need to implement (the Action Plan) it in a global format not only by the G20's members but also other countries."
Mr. Siluanov also noted that it is planned to develop recommendations on the basis of the report regarding the rules of deduction of various expenses, a revised approach to transfer pricing, tighter tax rules for the profits of foreign-controlled companies, as well as measures to counteract tax evasion in the rapid developing new forms of business, such as the digital economy.
The outcome of the G20 Finance Ministers and Central Bank Governors' Meeting is reflected in the Communiqué.