A group of institutional asset owners including the UK’s £150bn (€190n) Local Authority Pension Fund Forum (LAPFF) are calling on G20 leaders to reform the international tax system, making it more transparent.
Kieran Quinn, chair of the LAPFF – an association of 61 UK public sector pension funds with around £150bn in combined assets – said: “Modernising the international taxation framework cannot be separated from global financial integrity, rebuilding trust and strengthening resilience in international financial structures and investment markets.”
Others in the group are the Quebec fund Batirente, Royal London Asset Management (RLAM), Paris-based OFI Asset Management and Triodos Investment Management in the Netherlands.
Comprehensive transparency and disclosure should be adopted as core principles in the reform of the international taxation system, which will be put before the G20 Leaders Summit in Brisbane this weekend, the group said in a joint statement.
The statement supported the initial stage of the OECD BEPS (Base Erosion and Profit Shifting by multinationals) Action Plan.
Quinn said that, as international investors, it was a basic concern that sound governance practices were embedded in corporate activities – including tax planning and associated reporting and disclosure mechanisms.
“Financial secrecy, opaque accounts and aggressive tax practices do not best meet our underlying objectives as inter-generational investors aiming for sustainable value creation,” he said.